Three Trends of Modern Industrial Real Estate0

Posted by Thomas Miller, CCIM

miller-industrial-properties-warehouse-classificationsWith the end of 2019 drawing near, we’re approaching a new year that sounds almost too futuristic to be true. As 2020 dawns, logistics properties face an increasingly complex supply chain. Industrial real estate has evolved to keep up, and they will continue to push the envelope in terms of technological advancements. It’s already begun, as evidenced by these three trends of modern industrial real estate.

Multistory Warehouses

Multi-level warehouses can be found throughout Europe and Asia — a solution to these continents’ dense and expensive urban centers. With cheap, abundant land spread across the US, the decision to build up wasn’t necessary — until now. E-commerce has changed, and delivery times are faster and faster. It necessitates the location of warehouses closer to cities, and that can get tricky. Building upward is one way to maximize the use of an expensive piece of property that’s ideally situated.

Higher Ceilings

With more and more high-volume tenants in the picture, builders of industrial real estate are responding to the demand for higher usable height. In 1997, clear ceiling height was 25 feet. Today, it’s around 32 feet for new construction exceeding 300,000 square feet, but 36 and even 40-foot ceilings aren’t unusual.

Robotic Warehouses

Soaring ceilings are more feasible as mobile robots hit their stride. They’ve been around in some form or another since the 1950s, but the robots of tomorrow are part of impressive automated storage and retrieval systems (ASRS). Estimates by 2025 put over four million commercial robots in industrial warehouses — a gigantic leap forward from the 4000 robotic warehouses in 2018. It’s a logical evolution to boost productivity and efficiency in an effort to combat rising costs.

Northern Nevada is no stranger to these technologically-advanced facilities. If you’re interested in learning more, contact Miller Industrial Properties today.

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About the Author

Thomas Miller, CCIM

Thomas Miller, CCIM is the president and broker of Miller Industrial Properties in Reno, Nevada. He has worked in industrial real estate since 1991, with 15 years of previous experience designing and building industrial warehousing and manufacturing facilities in the northern Nevada market. Contact Tom at tom@mipnv.com or 775-742-9891.

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