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Field Guide to the Warehouse Market

(Updated June 2014)

With the economy making a turn for the better and the growing popularity of online retailing, demand for warehouse space is on the rise and gaining the attention of companies and investors. This Field Guide will provide you with market data and statistics; innovative ways to market and utilize warehouse space; and insight into the how the legalization of marijuana is making an impact on the warehouse industry. You’ll also find some useful resources available from the National Association’s Virtual Library. (K. Bartlett Walsh, Senior Quality Assurance/Customer Advocate)

Warehouse


Types of Warehouses

Warehouses are the most common types of storage, however other forms do exist (i.e., storage tanks, computer server farms, etc.). Some warehouses are massive structures that simultaneously support the unloading of numerous in-bound trucks and railroad cars containing suppliers’ products while at the same time loading multiple trucks for shipment to customers. Here we look at five different types of warehouses:

  • Private Warehouse: Owned and operated by channel suppliers and resellers and used in their own distribution activity.
  • Public Warehouse: Space that can be leased to solve short-term distribution needs.
  • Automated Warehouse: Advances in computer and robotics technology have enabled many warehouses to feature automated capabilities.
  • Climate-Controlled Warehouse: Space that is capable of storing many types of products including those that need special handling conditions. 
  • Distribution Center: Warehouses where product storage is considered a very temporary activity.

Source: Types of Warehouses, (KnowThis, 2014).


Q - ProQuest articles available for NAR members only. Password can be found on the ProQuest/Find Articles page.


Warehouse Market Data and Statistics

About the Warehousing and Storage Subsector (U.S. Department of Labor Statistics, 2014).

Surge in US distribution center construction, (Journal of Commerce, May 27, 2014). Q

7 Big Changes in Store for Commercial Real Estate (The Fiscal Times, Mar. 2014).

4 reasons 2014 will be the “year of the distribution center”, (Logistics, Mar. 2014). Q

Warehouse Space: The Next Big Real Estate Trend (Fortune Builders, Jan. 23, 2014).

Expectations and Market Realities in Real Estate 2014 (Deloitte Development,, Real Estate Research Corporation, & National Association of REALTORS®, Jan. 2014).

Warehouses Becoming Boon for Commercial Real Estate (REALTOR® Magazine Online, Jan. 28, 2014).

Emerging Trends in Real Estate 2014 (PwC & Urban Land Institute, 2013).

Industrial Real Estate Investors Lining Up to Tap Improving Warehouse Market (CoStar, May 2013).

Your Internet shopping sprees are driving an astonishing building boom, (Wired, Apr. 3, 2013).

Warehouse trends and specific industries that will drive warehouse and distribution growth and demand for space, (NAIOP Research Foundation, Mar. 2010).


Warehouse Brokerage & Investment

Ways to Make Money With Warehouse Space (Houston Chronicle, 2014).

How to Market Your Warehouse (Houston Chronicle, 2014).

How to Estimate the Value on Warehouse Space (eHow, 2014).

Buyers Making Homes out of Warehouses (REALTOR® Magazine Online, June 2014).

Converting Commercial Properties into Homes, (Wall Street Journal, May 29, 2014).

How to choose the perfect warehouse space, (National Federation of Independent Business, Mar. 27, 2014).

Big Builder Test Drives Home Design Plans (REALTOR® Magazine Online, Sept. 18, 2013).

New uses for vintange warehouses, (Development, Summer 2013).

E-commerce fueling demand for industrial distribution space: How investors can access this key market sector, (Avison Young, 2013).

The new borderless marketplace: Repositioning retail and warehouse properties for tomorrow, (NAIOP Research Foundation & International Council of Shopping Centers, 2012).

Redefining Creative Space (Urban Land, Jul. 27, 2011).

Challenges in Appraising “Simple” Warehouse Properties (The Appraisal Journal, April 2001). Q


Trending: Warehouses & Legalized Marijuana

Medical Marijuana Industry Hitting New Highs – Company Closes $4.6 Million Dollar Acquisition of 83,000 S/F Industrial Park (PR Newswire, Mar. 18, 2014). Q

Cities Planning Ahead for Legalized Medical Marijuana (SunSentinel, Mar. 19, 2014).

Warehouse Cultivation Space at a Premium (Marijuana Business Daily, Mar. 12, 2014).

Pot-growing warehouses in short supply as demand for legal weed surges (The Denver Post, Mar. 11, 2014).

Pot sales spark warehouse boom in Colorado, (Washington Post, Mar. 11, 2014).

The Carbon Footprint of Indoor Cannabis Production (Evan Mills, Energy Associates, Apr. 2012).


eBooks & Other Resources

eBooks.realtor.org

The following eBooks and digital audiobooks are available to NAR members:

Commercial Real Estate Investing 12 Easy Steps to Getting Started (Adobe eReader, Kindle)

Commercial Real Estate Investing – A Creative Guide to Successfully Making Money (Adobe eReader, Kindle)

The Complete Guide to Real Estate Finance for Investment Properties (Adobe eReader, Kindle)

A Master Guide to Income Property Brokerage – Boost Your Income By Selling Commercial and Income Properties (Adobe eReader)


Field Guides & More

These Field Guides and other resources in the Virtual Library may also be of interest:

Field Guide to Breaking Into Commercial Sales

Field Guide to Investing in Real Estate

Field Guide to Marijuana Grow Houses

Field Guide to Marketing Tips for REALTORS®

Field Guide to REALTOR® Safety

Field Guide to Site Selection

Field Guide to Surviving and Thriving in a Challenging Market


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The inclusion of links on this field guide does not imply endorsement by the National Association of REALTORS®. NAR makes no representations about whether the content of any external sites which may be linked in this field guide complies with state or federal laws or regulations or with applicable NAR policies. These links are provided for your convenience only and you rely on them at your own risk.