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Supply Chain Has a Real Interest in Real Estate

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piccommercialreal estateI recently had an opportunity to present a keynote speech at the Cassidy Turley National Leadership Conference. My presentation answered the question: “Why should real estate professionals be interested in supply chains?”

I shared the top 12 real estate trends that result from major supply chain transformations taking place today. These include:

  1. Retail store square footage peaking soon
  2. Substantial growth of retail store click and collect
  3. More frequent store replenishment
  4. Greater emphasis on inland ports, free trade zones, and rail
  5. Increase in nearshoring to Mexico and more transit through Port of Prince Rupert
  6. More large distribution centers (DCs), especially on the East Coast
  7. The greater the population density, the greater the number of logistics facilities
  8. Increased emphasis on the five levels of fulfillment centers (FCs)
  9. More FC 3PLs for pure online retailers and small omnichannel
  10. More combined DC/FC for large omnichannel
  11. Growing automation in DCs, DCs/FCs, and FCs
  12. Increased emphasis on regional transportation and reduced emphasis on nationwide transportation

My overall conclusion from the presentation was that supply chain transformations are a big deal—and real estate professionals who grasp the ongoing transformation within supply chains will do an awesome job in advising their clients on their real estate.

If I had been speaking to an audience of supply chain professionals, I would have reached a similar conclusion—that the evolution in real estate is equally important for supply chain professionals, and those in supply chain who fully understand the significance of real estate will do a superior job for their clients.

So, a word of encouragement to both real estate and supply chain professionals: Grasp the mutual importance of supply chain and real estate, and your ability to maximize growth, profits and value will soar.

Photo Credit: seishin17

Jim Tompkins
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