Industrial Deals
Location is the Key... Highway Access
Hauling is Time Sensitive for Customer Proximity
Industrial Real Estate Demand
Aircraft parts, pharmaceuticals, and food distribution are the key drivers for industrial demand. These industries have no limit for growth. The best indicator of what warehouse is doing well is to sit down with trucking companies. Those operators immediately relate the best clients and the importance of proximity to major highways and timing for deliveries. This is like watching a quck serve restaurant kitchen as a McDonald's whereby all the equipment is place in order to make the 60 second delivery time from the moment a driver pulls up to the call board in a drive through window to when the food is delivered to the patron. Trucking companies have their movements down to a science to efficiently get the goods from one place to another.
When one sits down with trucking executives the key point is delivery time to customers. The timing for delivery from request to delivery is noted by the recipient. Shipping companies relate customer comments about time sensitive deliveries. Loading docks and ceiling heights are the next requisite after highway proximity. A loading docks , staging area of materials, and high ceiling storage area are key for warehouses. The building then needs an area to stage the truck trailers when not in use. The best designed warehouses are the ones used by the freight companies. Their executives will explain he length from the trailer to the storage area and the pathway for the trailer cab to the turn off at the building curb to delivery.
Access the Long Island Expressway, the Bronx/Queens Expressway, New Jersey Turnpike, New York State Thurway are everything. Food delivery will relate the customer experience time from order to delivery, aircraft parts will relate the aircraft/ machine that is done and the request for instantaneous part delivery. A down aircraft or machine costs lost down time and listening to airport executives relate the importance keeping deliveries flowing.
The dynamics for industrial is a simple matter of revenue greater than expenses. The warehouse premises is a revenue source and for the type of business will the volume of the goods and services rendered exceed expenses? Industrial premises near demand generators as the Long Island Expressway, Manhattan, airports, and population centers have high volume freight. Sitting down the JFK Airport Officials one learns how the airport volumes are so great there is not enough warehouse space for the freight arriving and departing. The airport lacks places for trucks to idle and sort out incomplete bills of lading. As a result industrial rents near JFK start at $28 s.f. for the lease accessible freight warehouses and average $32 s.f. net rent.
Industrial real estate is all about proximity to major highways and access to population centers. In NYC the proximity to Manhattan via Maspeth, JFK, Navy Yard, Red Hook, Long Island City, and Hunts Point are vital. In Westchester the access to the Bronx Expressway is everything, on Long Island the access to the Long Island Expressway with towns of Lawrence, Hewlett, East Rockawy, New Hyde Park, Hempstead, Hicksville, and Melville have access to labor pools. The combination of highway access and one fare zone ridership for the labor pool make for viable real estate.
Industrial real estate is all about proximity to major highways and access to population centers. In NYC the proximity to Manhattan via Maspeth, JFK, Navy Yard, Red Hook, Long Island City, and Hunts Point are vital. In Westchester the access to the Bronx Expressway is everything, on Long Island the access to the Long Island Expressway with towns of Lawrence, Hewlett, East Rockawy, New Hyde Park, Hempstead, Hicksville, and Melville have access to labor pools. The combination of highway access and one fare zone ridership for the labor pool make for viable real estate.