I 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:
- Retail store square footage peaking soon
- Substantial growth of retail store click and collect
- More frequent store replenishment
- Greater emphasis on inland ports, free trade zones, and rail
- Increase in nearshoring to Mexico and more transit through Port of Prince Rupert
- More large distribution centers (DCs), especially on the East Coast
- The greater the population density, the greater the number of logistics facilities
- Increased emphasis on the five levels of fulfillment centers (FCs)
- More FC 3PLs for pure online retailers and small omnichannel
- More combined DC/FC for large omnichannel
- Growing automation in DCs, DCs/FCs, and FCs
- 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