How warehouses are taking over the U.S

The big online shopping holiday comes amid a warehouse shortage across the United States as distribution centre vacancy rates are at all-time lows.

The expansion of warehouses across the United States is driven by the booming e-commerce industry, with increased demand for online shopping and faster delivery services. This growth has led to a shortage of warehouse space, prompting the need for additional industrial facilities. Here are key points to highlight how warehouses are taking over the U.S.:
  High Demand and Low Vacancy Rates:
  •  Warehouse vacancy rates are at all-time lows, with nearly 96% of existing industrial space in use, according to JLL.
•   The U.S. may need an additional 1 billion square feet of new industrial space by 2025 to meet the growing demand.
  Supply Chain Impact:
•    Retailers are investing in e-commerce operations to meet consumer expectations for faster delivery.
•    Warehousing space is also being secured to mitigate the impact of potential future supply chain disruptions, as seen during the COVID-19 pandemic.
 Rising Rents and Pre-leasing Rates:
•    Rents for warehouse spaces are at all-time highs due to the high demand.
•    Pre-leasing rates, where warehouses are leased before construction completion, have surged, indicating the urgency to secure warehouse space.
  Controversies and Local Impact:
•    The rapid growth of warehouses has led to controversy over land use, particularly in areas like the Lehigh Valley, Pennsylvania.
•    Some communities are expressing concerns about the impact of warehouses on local traffic and the environment.

   Shift in Local Economs:
•    The expansion of warehouses has shifted local economies, and industrial developers are facing challenges in finding suitable and acceptable locations for new facilities.
 Creative Solutions and Unconventional Locations:
•    Industrial developers are getting creative and exploring unconventional locations, such as aqua parks and scuba diving centres, to build warehouses.
•    This shift in strategy is a response to the tightening supply of available land and local opposition to traditional warehouse locations.
 Land Use Controversies:
•    Local residents and businesses may oppose the construction of warehouses, leading to conflicts over land use.
•    Some property owners who initially opposed warehouse construction may eventually sell their land due to the changing landscape.
 Impact on Retirees and Landowners:
•    Individuals like Stuart Schooley, who owns a diving centre and aqua park, may sell their land to real estate developers looking to build warehouses.
•    The influx of warehouses can impact the retirement plans of landowners and reshape local landscapes.
   Changing Perceptions:
•    The growing number of warehouses in certain areas has led to changing perceptions, with some communities questioning when "enough is enough."
The warehouse boom in the U.S. reflects the evolving dynamics of the retail and logistics industries, impacting not only supply chains but also local communities and economies.