The rise of e-commerce means that companies must re-think where and how they construct distribution facilities, says Bob Silverman of Jones Lang LaSalle. Silverman notes how other market trends also are impacting facility planning.
Rich Thompson, managing director with Jones Lang LaSalle, wonders whether retailers are prepared to satisfy the growth in demand that comes with a recovering economy and rising freight rates.
Top U.S. airports are engaged in a fight for a larger share of the challenged U.S. air cargo market, according to JLL's annual Airport Outlook Report. With world trade growing faster than demand for air cargo, both airports and air carriers face a significant challenge – how can they attract airfreight and fend off competition from other cheaper modes of transport such as intermodal and trucks?
Companies that successfully rode out the recession are now looking for better times ahead, but they should be cautious, says a report from Jones Lang LaSalle, which identified five operational issues that companies should remain focused on as the economy continues to strengthen.
Industrial real estate is poised for a spike in demand, development and delivery according to research by Jones Lang LaSalle. Industrial markets nationwide have been recovering for more than four full years, with 15 consecutive quarters of positive net absorption. Last year marked a five-year high, with 168 million square feet of net absorption, and, with current forecasts, this figure could top 180 million square feet in 2014. So, what's behind this momentum?
Near-instant gratification from shopping online, mobile and in-store is now a standard consumer expectation - and sophisticated real estate models are evolving to rise to the occasion. The omnichannel logistics models that make a seamless consumer experience possible are now built on a foundation of six new types of facilities, according to a report by Jones Lang LaSalle (JLL).
Demand for U.S. industrial distribution centers, larger than 300,000 square feet, is high and rising, according to real estate services firm Jones Lang LaSalle's first "Big Box Velocity Index". Improving economic conditions, the continuing growth of e-commerce and a deep bench of tenants seeking space have all created this highly competitive fight for industrial and warehousing space. As a result, there is 96.7 million square feet of industrial construction under way, with nearly half speculative, with an average building size of 360,000 square feet.
Omnichannel retailing is here to stay, and retailers not using it successfully are losing sales and profits to those that do. In devising an omnichannel strategy, the natural starting point is the point of purchase "” brick-and-mortar stores and/or e-commerce sites for online and mobile shopping. But customer expectations don't stop when the sale is made. Order fulfillment is every bit as important to winning repeat business. Now more than ever, a well-developed supply chain strategy is vital to retailers' success.
Two executives from industrial realty firm Jones Lang LaSalle discuss issues impacting retailer's distribution site selection decisions, including the growth of multi-channel distribution and rising transportation costs.
Long a go-to for corporate cost cutting, corporate real estate has turned a corner and is becoming a solid productivity driver, with CEOs starting to reap the rewards of enhanced revenue, shareholder value and employee performance. A new Jones Lang LaSalle report reveals that companies that view real estate assets singularly as a source of short-term cost reduction are actually incurring hidden long-term financial and operational risks.
