Posted on August 9, 2016 · Posted in Industrial / Flex, Investments, Retail

One of the nation’s leading cost-effective fulfillment and integrated direct mail marketing companies, APS Fulfillment, Inc., weighs in on two reports showing strong e-commerce demand has created the tightest demand for warehousing and fulfillment in a generation.

“According to two new reports, businesses are leasing warehousing space at record levels as strong e-commerce drives companies to locate their fulfillment needs closer to major population centers,” says Charles Aultman, president of APS Fulfillment, Inc. “As opposed to sprawling rural sites, urban warehousing and fulfillment space helps brands ensure their products are on hand to meet their customers’ delivery expectations.”

During the second quarter, businesses leased 70.1 million square feet of space, a 6% increase over the same period in 2015. This also represents the most leased space in over 30 years. In a separate report, warehousing and fulfillment availability declined for a 25th consecutive quarter to just 8.8%. (Source: “Retailers Lease Warehouse Space at Record Pace,” wsj.com article, July 12, 2016; http://www.wsj.com/articles/retailers-lease-warehouse-space-at-record-pace-1468352243.)

“One of the biggest drivers of warehousing demand is location. This is also driving up rents,” Aultman adds. “While outsourcing to a warehousing company that is close to a major city center allows for faster fulfillment, it can also be more expensive than using a site far away from a city center. But not always.”

Aultman explains that while big-box warehousing are built far from urban centers, warehousing and fulfillment centers under 300,000 square feet are more commonly located in urban areas where costs are lower.

“APS Fulfillment is located in Southern Florida and adjacent to all major transportation hubs. It’s just minutes from Interstate 95 and only 40 minutes from the Miami International Airport,” Aultman adds. “It is also just 20 minutes from the Port Everglades, the top port in Florida, and 30 minutes from the Port of Miami—two of North America’s largest export hubs. These two ports are also in close proximity to South America, the Panama Canal, and Europe. In addition to this enviable location, APS Fulfillment’s state-of-the-art inventory technology, and real-time shipping solutions means businesses can have their products received, inventoried, and shipped in just two days.”

 

Source: Profit Confidential

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