In 2020 the world was forced to close work spaces, and businesses had no choice but to operate online. The business world has slowly made a comeback, with employees making their way into offices as either part of a hybrid or office work model.
Many companies had to give up their spaces back in 2020, as it wasn’t profitable to have a workspace that came with bills and other commitments that weren’t properly utilised. Now, these companies are actively looking for and buying office spaces that fulfil their needs and allow their employees to work on-site.
However, for many e-commerce businesses, offices aren’t the type of space being sought after. Instead, these businesses are looking for warehouse spaces. This article will examine why this is the case.
Why Is Demand For Warehouses Skyrocketing?
In lockdown, eCommerce businesses saw an enormous jump in profit. This was down to several factors, but the main one was that the general public couldn’t visit stores in person. And as a result of being stuck indoors, many of us became in tune with our passions once again, which saw many people start their own independent businesses selling various products. Overall, this led to companies having a greater demand for stock and outgrowing their current stock spaces.
Modern warehouses are now becoming the hub for eCommerce businesses, as they house inventory securely and efficiently for businesses of any size. Having more than one distribution center across the country is desirable and helps eCommerce businesses with shipping costs and turnaround rates.
Unfortunately, due to the pandemic, many retailers went out of business. Subsequently, this freed up large spaces previously used as stores. Now, these spaces are frequently being renovated into warehouses used by eCommerce businesses.
Emerging Trends For Warehousing
With the rising demand for warehousing – how are businesses procuring warehousing spaces? Let’s take a look at emerging trends for warehousing in response to the eCommerce boom.
Flexspaces
Many eCommerce businesses are investing in flexspaces that provide both office facilities and industrial warehousing space. Flex spaces have lower initial costs and fewer improvement costs. Plus, they allow businesses to handle both their warehousing and daily business operations in a single space. Flexspaces are usually adapted from large office spaces that have been abandoned with the rise of remote working. This rise in remote working has allowed eCommerce businesses to snap up these spaces and repurpose them for warehousing.
Refrigerated Storage
The pandemic caused an increased consumer interest in online grocery shopping. With this increased interest in online grocery shopping comes the need for warehouses with refrigerated storage spaces to keep food and groceries fresh for deliveries. Prices for refrigerated storage in warehouses are therefore increasing in line with demand.
Sustainability
With the increased interest in warehousing spaces comes the need for more construction. Many eCommerce businesses need warehouses within a close proximity to their customers to reduce the ‘last mile’ struggle. As more warehouses are being built, construction companies are rethinking the sustainability of warehouse design. We can expect to see more sustainable materials for warehouses, along with reconfigured column spacing and ceiling height. Amazon has even patented designs for underwater and underground warehouse facilities!
Cloud-Based Security
As the warehousing industry booms, businesses need to place more emphasis on security to prevent shrinkage due to theft. Theft accounts for over 35% of retail losses, a figure which eCommerce businesses must strive to address to compete in this bustling market. Cloud-based security seems to present a solution to this retail shrinkage, offering businesses the ability to remotely manage their security.
Cloud-based access control and video surveillance allow system administrators and security staff to view their security feed from anywhere, investigating potential incidents the second they occur. With cloud-based commercial door locks, system administrators can lock and unlock doors remotely to ensure their facility is always secure. In the coming years, we can expect to see cloud-based security become standard for warehousing security.
RFID Barcode Scanning
Efficiency is everything when it comes to supply chain solutions. Warehousing businesses are keeping up with the rising demand for warehousing by implementing RFID barcode scanning and eliminating time-consuming manual data entry processes. Not only will this resolve errors, but it will allow eCommerce sellers more insight into where their products are.
Summary
When assessing the above points, it is easy to assume that the commercial real estate industry is getting back on its feet, with support from business owners and large online retailers that need inventory space. As demand for these supplies increases, we will see changes in the way eCommerce businesses use warehouse spaces. We will see more innovative designs for warehousing, more sustainable design, and more repurposed spaces for warehousing. You can also expect to see an increase in price for refrigerated storage spaces as the interest in online grocery shopping continues to rise.