Home Retail With warehouses full, retailers look to store goods outside

With warehouses full, retailers look to store goods outside

by Ozva Admin

After retailers stocked up during the height of the pandemic, people stopped buying so many things. That forced retailers to find a place to store all your excess inventory, filling up most of the country’s available storage space.

But lack of storage space It hasn’t stopped companies from finding new places to store their products, even when all the warehouses are full. Now, many companies are turning to a new solution: storing products abroad.

This is known as outdoor industrial storage. It’s becoming popular, in part, because outdoor storage facilities are flexible.

“You could easily store products outside,” said Blair Duncan, associate vice president of actual term, a company that buys outdoor storage facilities and rents them out. “You can have empty trailers, you could also have actual vehicles on the site.”

Duncan said his company recently purchased a warehouse in Rancho Cucamonga, California. The property is connected to a large parking lot, where a tenant has parked around 50 truck trailers.

“They’re just using the parking lot and not the warehouse,” Duncan said. “It’s kind of an interesting dynamic that we’re seeing.”

As a result of running out storage space during the peak of the pandemic, Retailers began to embrace what is known in the industry as “warehouse on wheels,” said Lance Theobald, co-founder of SecurSpacea company that helps retailers find outdoor storage sites.

In recent years, Theobald said, demand for his service has increased tenfold, especially from large retailers who need to stock products on short notice.

“They have a ship that comes in with a couple hundred containers, unloads it, puts it in this batch and picks it up as needed, or when they can,” Theobald said.

Traditional warehouses are overcrowded, in part, because there is now so much more than just storage inside them. Customers break down shipments, sort them, and repackage them for distribution.

“We went from storage as a storage activity to these really multifunctional sites,” he said. Juliann Emmons Allison, a professor at the University of California, Riverside, who has been researching storage in Southern California. “And because of all the things they’re doing, they had to get bigger.”

As the warehouse industry has expanded, communities in California’s Inland Empire region have regressed. Allison doesn’t think new industrial outdoor storage facilities will be much more popular.

“I can’t imagine a community being happier to see a pile of bins stacked up in their neighborhood full of merchandise than to see a warehouse,” Allison said.

Both types of storage facilities generate a lot of truck traffic and diesel fumes. They come with other environmental costssaid Susan Phillips, director of the Robert Redford Conservancy for Southern California Sustainability at Pitzer College.

“When you pave a piece of land, you lose opportunities to do other things with that piece of land,” Phillips said. “You lose opportunities to farm regeneratively, you lose opportunities to use your land as a carbon sink. Instead, it becomes a carbon source.”

Outdoor storage doesn’t have the same environmental impact as traditional warehouses, Phillips added. Empty lots don’t require a lot of construction, and if the logistics industry slows down, they’re much easier to repurpose.

“It doesn’t have to be a warehouse forever, and you’re not going to be stuck with this abandoned infrastructure,” he said.

At the outdoor storage facility in Rancho Cucamonga, Realterm’s Duncan said his company is focused on buying existing warehouses that are already connected to large parking lots.

“It is more difficult to replicate and build these outdoor storage sites, given the prohibitive zoning,” he said. “People don’t want more truck terminals, people don’t want more secure parking lots. So what we find is that these sites become more and more valuable.”

During the pandemic, Duncan said, rents for these outdoor facilities have doubled and even tripled.

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