#distribution building

The Markets You Need to Know to Dominate Distribution

August 19, 2016

In its inaugural annual Distribution Markets study, JLL’s research team, special practice groups, and industrial professionals worked closely to locate the top 18 distribution markets in America.

When most hear industrial, the immediate thoughts bounce to the Inland Empire in Southern CA, as well as New Jersey, and other coastal and geographically centralized regions.  But, as transportation costs rise and demand for immediate service increases, there are other areas that will also rise in prominence in the sector.

The report dives deeply into what determines a market’s ranking, with considerations that include: population access, labor metrics, costs of business, taxes and incentives, and CRE fundamentals affecting investment and site-selection.

The rankings are:

New Jersey/New York Metro Area

Southern California

Central and Eastern Pennsylvania

Chicago Metro

Dallas/Fort Worth Metroplex

Atlanta

The Mideast

The Mid-Atlantic

Southeast Texas

Louisville, Memphis, Nashville

The Carolinas

Florida

Minneapolis

Kansas City, St. Louis

Northern California and Reno

Las Vegas, Phoenix

Denver, Salt Lake City

The Pacific Northwest

To see why each market ranked as it did, be sure to read the in-depth report at the jump.

READ MORE AT JLL RESEARCH

For more on this topic and others regarding the Inland Empire, be sure to attend Connect Inland Empire on October 6.

Thursday, March 31, 2016

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Delivery in a day is just too slow. At least, that seems to be the philosophy at Amazon, which in the last year has quietly built out a network of at least 58 Amazon Prime Now hubs in the US to fulfill one- and two-hour deliveries.

The buildout of the Prime Now hubs goes toward the goal of getting goods to the market faster, but it’s also one cog in a larger strategy to create a lean, cost-efficient logistics network that rivals anything its competitors can offer. That’s an important step for Amazon, which loses billions of dollars getting goods to consumers.

Amazon Echo, home alone with NPR on, got confused and hijacked a thermostat

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Those hyper-fast deliveries are available to Prime Now customers living in the high-density urban areas where the hubs have been built, said Marc Wulfraat, president of logistics consultancy MWPVL, in a presentation hosted by SunTrust on Thursday (March 11). The new warehouses—typically 50,000 to 60,000 square feet—are fed by Amazon’s 86 gargantuan fulfillment centers, but only with about 10,000 bestselling items as rated by the company’s internal data. Wulfraat said he could confirm 58 Prime Now hubs, but there could be more.

“This has probably been the most secretive piece of data that the company has not been talking about,” he said during the presentation, adding that the Prime Now hubs amount to Amazon’s equivalent of having retail stores.

Trying to scare women away from traveling alone won’t keep them safe

“My take on it is that the less that people know about this the better,” Wulfraat told Quartz. “They are not even publishing the addressed locations of these buildings; they are unmarked.”

An Amazon spokeswoman would not say how many hubs the company has built, only that Prime Now is available to customers in more than 25 metropolitan areas.

To slice away at shipping costs, the company is eliminating the middlemen in China who deliver goods from warehouses to seaports, opting to bring that job in-house. It also bought thousands of tractor trailers (not the trucks) to more efficiently load and ship goods. And most recently, Amazon announced it’s leasing 20 Boeing 767s to deliver its own goods to and from its fulfillment centers, a move that diminishes the company’s reliance on third-party shippers such as FedEx and United Parcel Service. The company’s flight hub will be in Wilmington, Ohio.

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The new Prime Now hubs are one of three types of warehouses the company is running to further reduce third-party delivery costs. In addition to its fulfillment centers, it began in 2013 to build so-called sortation centers. Those warehouses are meant for nearby small-parcel shipping, which allow the company to shift deliveries from FedEx and UPS to the less-expensive US Postal Service, Wulfraat said.

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“Nobody beats the post office when it comes to taking the cost out of shipping,” he added.

For example, if a customer in Boston bought a one-pound item through Amazon online, it was then shipped from the Breinigsville, Pennsylvania, fulfillment center by FedEx or UPS for about $4.50. Now, Boston shipments can be sent to a sortation center in Stoughton, Massachusetts, where the US Postal Service delivers the package for about 80% less.

CBRE: Cyber Week’s   E-Commerce Sales Up Dramatically From 2013  

LOS ANGELES — A recent CBRE report found that online sales   during the course of the Thanksgiving weekend grew 17 percent over 2013, with   an average order size of $124. Similarly, on Cyber Monday, sales grew 8.5   percent year-over-year (Cyber Monday fell on Dec. 1 this year).

Scuderia West Motorcycles Purchases Disitribution Bldg

By Luke Andreen

November 18, 2014

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                       The     704,115-square-foot facility will join Amazon's existing California     fulfillment centers in San Bernardino, Moreno Valley, Patterson and Tracy.

    REDLANDS,   CALIF. -- Amazon has announced it will open a fifth California fulfillment   center in Redlands. The 704,115-square-foot facility will join existing California   fulfillment centers in San Bernardino, Moreno Valley, Patterson and Tracy.   Once complete, the online retailer will have expanded its presence in   California to 2 million square feet. 

  "We are proud to be hiring   for more than 2,500 full-time jobs in California that offer wages 30 percent   higher than traditional retail stores and include comprehensive benefits on   day one, bonuses and stock awards," says Mike Roth, Amazon's vice   president of North American operations. "We have found great talent in the   state and we're excited to be growing quickly to serve our   customers."