When it comes to warehouse construction, location and land development are everything. They affect everything from operational efficiency to customer satisfaction, and a poorly selected home for your warehouse can lead to big losses.
Here, we’ll explore the importance of location in warehouse construction and land development’s role in this process.
Benefits of a Good Location for Warehouse Construction
The location of a warehouse determines the success of a business. A well-chosen location offers several benefits, including:
· Proximity to Customers and Suppliers
The proximity of a warehouse to its customers and suppliers directly impacts the business’ efficiency and profitability. For instance, Consider a dairy company that produces fresh milk miles from local grocery stores, cafes, and bakeries. The business would need to transport its milk over long distances, and if delays happen, the product may spoil or have a shorter shelf life. And when consumers realize the milk quality may have changed, it’s farewell to the diary’s reputation. Even if the company delivers the milk on time, they still incur substantial transportation costs, reducing its profit margins.
· Accessibility to Major Transportation Routes
Businesses near major transportation hubs like highways, ports, and airports can easily receive and distribute goods, reducing lead times and improving overall supply chain management. Furthermore, these main routes give companies access to a larger customer network. For example, a warehouse near an international airport or port can easily serve customers in other regions or countries, expanding its market reach and increasing sales.
· Availability of Labor
A warehouse within or near the city can readily access an available and qualified labor force compared to a business in a deserted area. Such a warehouse is flexible to adjust to sudden demand spikes, reducing the risks of stockout and lost sales.
A skilled labor force may help businesses implement new technology and equipment, allowing them to streamline operations and increase efficiency. It can also reduce errors and increase the quality of service, improving customer satisfaction and loyalty.
Types of Land Development for Commercial Warehouse Construction
Manufacturers must consider the type of land development they need for warehouse construction, allowing them to customize their operations and save on costs. Here are some of the standard options:
1. Industrial Parks
These are large sections of land chosen for their proximity to major transport hubs, such as highways, railways, and ports, and are designated for industrial use. Furthermore, they provide warehouses with access to shared infrastructure like roads, utilities, and communication networks, allowing businesses to save on building their own. Companies also enjoy tax incentives, among other benefits, reducing costs and increasing profitability.
2. Brownfields
Brownfields are abandoned or underutilized industrial sites that can be redeveloped for warehouse construction. They may require environmental remediation to rectify contamination from previous industrial activities but are beneficial for businesses looking for cost-effective locations to establish their operations.
Brownfield redevelopment can catalyze economic development and revitalization in blighted areas. Bringing new businesses and jobs to previously abandoned or underutilized sites can help reinvigorate local economies and communities.
3. Shovel-Ready Properties
Shovel-ready properties are parcels of land prepped for immediate development. These properties are often located in areas with high demand for industrial space, such as near major transportation routes or in growing communities.
For instance, G3 Real Estate offers a range of shovel-ready properties in Modesto, California, with varying sizes and locations to suit different business needs. The company’s team of experts can help businesses plan their warehouse space and make the most efficient use of the available square footage, ensuring their operations are optimized for success.
4. Greenfield Sites
These are sections of virgin land that have never been involved in any development activity. Warehouse construction on a greenfield site allows businesses to customize the land to meet their needs, from the facility layout to the surrounding landscape.
However, these sites may require significant infrastructure development, such as utilities and transportation routes, which are time-consuming and expensive. Similarly, the construction work may harm the surrounding environment, raising maintenance costs to uphold eco-friendly regulations.
5. Build-to-Suit Properties
These are warehouses designed and constructed to a tenant’s exact specifications. They offer high customization opportunities and are often located in areas with limited development land. G3 Real Estate deals in build-to-suite warehouses in Modesto, California, high-profile sites to allow new businesses to set up their operations fast without worrying about warehouse construction costs and activities.
Key Considerations in Selecting a Warehouse Location
Choosing the right location for commercial warehouse construction ensures the business operations serve their purpose to the right audience. Here are some popular considerations:
· Identifying Target Markets
Businesses should understand their customer base and location to determine whether their products will be accessible to consumers easily. For example, if your company sells fresh produce like fruits and vegetables, you’ll want to pick a warehouse close to big cities to ensure your perishable goods are delivered on time. On the other hand, if you’re a furniture wholesaler dealing in large, heavy items like sofas, beds, and cabinets, you’ll need a warehouse close to major highways and other transportation hubs.
· Assessing Local Workforce and Labor Market
Evaluating the local workforce and labor market helps impacts a business’s productivity, efficiency, and overall operational costs. Consider a company manufacturing high-tech products such as computer chips, smartphones, or medical devices. The manufacturer may need a warehouse in a region with a strong tech industry, like Silicon Valley or Boston. These locations have access to a large pool of trained professionals, including engineers, software developers, and technicians, experienced in working with complex tech products.
· Evaluating Transportation Infrastructure and Traffic Patterns
Infrastructure and traffic patterns affect your logistics operations’ speed, cost, and reliability. For example, A company that manufactures clothing needs to import raw materials, and export finished goods frequently. The manufacturer may consider locating their warehouse near a major port, like Los Angeles or New York, which also has a network of highways, rail lines, and intermodal transportation hubs.
· Considering Local Taxes and Regulations
Businesses should evaluate a location’s tax rates, zoning laws, building codes, and other regulations that may impact their operations. For instance, a beverage producer distributing alcohol in aluminum cans may need to consider the local laws concerning the sale and supply of alcohol. This includes obtaining permits and licenses and adhering to specific zoning requirements.
Build Your Business From the Ground Up
Land development is vital in warehouse construction, and businesses should carefully consider their location options. If you’re a business looking for a range of build-to-suit warehouses and shovel-ready properties in Modesto, California, G3 Real Estate is an excellent choice. Experience faster warehouse construction time, reduced costs, and fewer uncertainties with their pre-developed land options, property management services, and 3pl logistics. G3 Real Estate is committed to providing exceptional services to its clients. Don’t hesitate to contact us today for your warehouse construction needs.
