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28
Feb
2012

Flexible Space Helps With 3PL Warehousing Capacity Issues

Flexible Space Helps With 3PL Warehousing Capacity Issues

There is a scarcity of 3PL warehouse space. The global epidemic sparked a surge in eCommerce and a shift in inventory tactics, driving up demand for desirable logistics space. The warehouse vacancy rate in Vancouver BC, Western Canada has the lowest vacancy rates in North America.

Businesses have had to get imaginative in a desperate search for space. Vendors that have shut down due to the pandemic have been transformed into eCommerce fulfilment centres. In certain cases, decommissioned shopping malls have been converted into logistical hubs. A food company was obliged to hold almost a third of its shipments in a parking lot. 

Because of the high demand, it's a landlord's market. As a result, we're seeing higher rates fore warehouses and distribution centers. (industrial rentals are up 7.4% year over year), as well as more long-term leases on the market. Many developers have begun constructing and releasing speculative spaces with the expectation that tenants will queue up once they are done (or even before they are completed).

Many organisations are finding themselves unable to get warehouse, cross docking or trans loading arrangements that meet their needs. They find themselves looking for solutions that can assist businesses with meeting peak-season demand, consolidating operations under one roof, and/or gaining cost savings for smaller operations. Micro breweries for instance can not find the space to store their product in an RTD temperature detected warehouse, so they rely on the 3PL that will co pack and re pack their mixed packs for their beverage line. Alcohol, wine, beer, spirits and other drinks/liquor.

The CWLA is a community of like-minded warehousing & supporting companies. We can help you generate leads, stay informed with industry news, regulations, & upcoming events. Our association is open to all warehousing, trucking, co-packing, or fulfillment providers. Please contact us if you have any questions.