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E-commerce Drives up Demand for Warehouses and Distribution Centers


The warehouse construction and real estate markets are heating up fast. While storage buildings aren’t exactly the prettiest pieces of property, they are rapidly increasing in worth as more retailers invest in valuable space for their products.

Trends in e-commerce have made retailers rethink the way they store, ship and package items. Companies like Amazon, Wal-Mart and others have implemented one- and two-day shipping programs, changing the way shoppers view shipping standards.

Meeting Consumers’ High E-Commerce Expectations

According to a survey from Deloitte, fewer than half of respondents considered 3-4 day shipping to be fast, down from 63 percent who said the same in 2015.

Meanwhile, increasing numbers of consumers expect shipping to be free, even during the busiest shopping season of the year. Almost two-thirds of consumers said free shipping should be a given, even when ordering a gift on Dec. 17 to be delivered before Dec. 24.

To a consumer, fast, free shipping is a realistic expectation. However, to a retailer, delivering on this promise can be a challenge. The fact is, shipping isn’t free – that cost needs to come from somewhere. And it’s certainly not fast. Most of the time, packages can only be delivered as fast as truck operators can drive.

To meet these high standards, retailers are seeing the importance of distribution centers and warehouses located in areas they’ve never considered before – on the outskirts of large cities. According to Construction Dive, retailers of the past preferred warehouse space to be out of the way, near a port and on inexpensive land. It’s no surprise, then, that most warehouses match this description well and lack the qualities that today’s retailers seek.

Warehouse Construction Provides Relief

The Wall Street Journal reported that warehouse demand has been stressing the market for years, with far too few warehouses available to retailers, and even fewer with ideal qualities for retailers trying to improve their online shopping experiences. Rental prices have soared, and some of the biggest warehouse providers have seen record high occupancy rates.

The commercial construction market has responded by ramping up warehouse and distribution center construction in some of the nation’s most populous areas. According to the National Real Estate Investor, 54.7 million square feet of warehouse and distribution center space will be built in 2017. Nearly 44 percent of this will be located in:

  • Dallas.
  • Chicago.
  • San Bernardino, California.
  • Kansas City, Kansas.
  • Central New Jersey.

Commercial Construction Storage Containers Keep Worksites Secure

New consumer demands changed the way retailers view warehouse space. In a similar fashion, changing needs from their own customer base will also change the way builders view their old practices. Building bigger warehouses and distribution centers requires heavy machinery, lots of materials and large crews. Additionally, new construction locations near major population hubs puts construction firms at greater risk of vandalism and trespassers.

Warehouse construction is on the rise so retailers can better meet consumer expectations.Online shopping expectations are rising the bar for retailers, who need to invest in new warehouse space.

As more people invest in the warehouse construction industry, maintaining efficient workspaces will be critical. Having construction storage containers onsite can keep all equipment and materials secure. Additionally, it will ensure that would-be vandals and thieves don’t have access to expensive supplies. To make your construction site more secure, reach out to Mobile Mini. Our storage containers for construction are equipped with our patented Tri-cam Locking System, plus are weather resistant.