How to Find the Best Warehouse Space

Finding Warehouse Space: Top 3 Site Selection Factors You Must Consider

Not all warehouse spaces are created equal. That is, not when it comes to the specific needs of your business. When looking for industrial space, there are numerous factors to consider in the site selection process to ensure optimal business efficiency. These factors include labor, accessibility, and functionality.

1.       Labor

The proximity to labor is vital when selecting a new site for your business. Skilled workers are a necessity in keeping any company operating smoothly.  The labor market is currently at its tightest – with unemployment reaching a record low in the State of Minnesota and all over the United States. Workers hold the leverage today, so asking potential or current employees to commute long distances may not pan out well in the end. It is crucial that you perform a solid labor analysis in order to position your business near skilled workers. Proximity to a strong labor force could be a considerable factor in determining the success of your business.

2.       Accessibility

Accessibility to key infrastructure is equally as important. Not only is proximity to major highways and transportation routes essential, but the ability to get on and off those routes with ease is imperative. Poor accessibility can drive up transportation costs and have a negative impact on your delivery and production times. With supply-chain issues being a major problem over the past several years, it’s important that your business understands how a particular site’s accessibility could influence product transit times and costs.

3.       Functionality

An effective real estate portfolio should function in a way that aligns with your company’s visions and goals. The overall layout, build, and design of a space can have drastic impacts on all areas of your business – production time, safety, and more. Understanding your current and future needs is the foundation for building out the best, highest-functioning warehouse space. How many dock doors or drive-ins do you currently have? Will you need more in the future? Does the overall layout accommodate your process flow? Does it allow you to improve upon your current process? Does the building’s clear height leave room for essential racking systems? Having a well-functioning layout can accelerate or hinder your business’s success, so it’s imperative to factor functionality into your site search.

Taking a sophisticated approach to your site selection makes sure to enhance the success of your new distribution or warehouse space.  Do your due diligence and look for areas with a strong labor force, good accessibility to key infrastructure, and properties that align with your specific current and future needs. Although these factors are generally universal to all warehouse users, there may be other industry-specific components that need to be considered as well. Completing a comprehensive analysis of your requirements ensures that the final result is a location that is attractive to employees, saves you time and money, and functions seamlessly.

-

Are you looking for warehouse space and want some expert advice? Reach out to Rokos today! We can help you find the perfect space for your business.

Rokos Advisors is an award-winning Minneapolis – St. Paul-based commercial real estate/tenant representation firm specializing in helping business owners find the perfect office or industrial space for their company.