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How to Pick the Right Warehouse Location

Updated: May 17

 

In my last blog, How to Pick the Right Warehouse Space, location was number one on my list. There are many factors to consider when looking at locations, but the ultimate goal is to pick one that works best for your particular needs. How do you pick the right warehouse location?


Bird's eye view of semi truck pulled up to a loading dock at night.

 

First off, work with a broker that has industrial expertise––someone who knows warehouses and the surrounding market. When it comes to location, there’s a lot to discuss. For now, I’ve cited five critical areas to think through. In the next blog, we’ll look at real world solutions.

 

1.      Accessibility. Is the location accessible to roads and highways needed in your supply chain or for business requirements? What’s the traffic flow? Will it impede the efficiency of employees, supplies, and resources coming in and out of the warehouse? What condition are the surrounding roads in? Check to see if any future road construction is planned in the area.

2.     Workforce. Can the area support the employees you need to effectively operate? How hard will it be to find people with the necessary skills? Can employees easily get to the location, or will transportation become an issue? Workforce availability, reliability, and skill levels are critical.


Front view of a train on the tracks.

3.     Proximity. What’s the proximity to suppliers? Customers? Can the surrounding highways support trailer truck traffic? If needed, is the property close airports, trains, and ports to move the goods along the supply chain? Google Maps, a drive around the area, and the knowledge of your broker can help you make sure you are close enough to the things that matter.

4.    Regulations. Cities base rules and regulations according to the warehouse use. Go through the list. For example, does the building have a sprinkler system? If not, does the city require it? Because decisions are made locally, a neighboring city’s rules may vary and end up as a better financial option. Also, are there movements to change existing laws or community tension around traffic flow? Both can have impacts down the line. An expert broker in industrial is a huge asset here.

5.     Cost. Of course, run the numbers on rent rates, utilities, and taxes. The further you get from major transportation hubs, the lower the rent. But be sure to check the costs to move goods to and from each point on the supply chain. Also, can you afford the labor costs in the area? Each of these costs need to factor into your decision.

 

Conclusion

Choosing a warehouse location requires a thorough process. Working with an experienced broker and financial professional can definitely ease the pain. Find a broker that knows the warehouse market, has experience in the area, and has a network to call on when needed.


Want to move? Looking to sell? Want to buy? Let's connect.

 


Happy Jeff

Jeff Salzbrun is the owner/broker of Commercial Equities Group (CEG). As a veteran-owned real estate brokerage, CEG has been involved in thousands of sale and lease transactions, ranging from single offices to 250,000+ square foot buildings. At CEG, we get your deal done. We know space, and we know the CRE business.

 


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