How important today is a company’s logistics team in choosing the right location?
Logistics is how the product gets to the consumer efficiently, quickly and with the lowest costs possible. Fifty percent of the cost of logistics is transportation. Labor is about 17 percent. Rent is just 4 to 5 percent. With the rising cost of transportation, it’s even more important to bring a logistics team into the decision-making process from day one, because a difference of 50 miles can change the economics tremendously. A logistics team and its expert advisers must look at potential locations based on labor costs, labor availability, incentives, ease of doing business, access to major thoroughfares, and access to intermodal and/or freight rail. Those are key elements in making a sound decision. Can good values still be found in the industrial real estate market? There is very little on the market as far as investment real estate. However, off-market deals from owners who find themselves in must-sell situations are increasing in numbers each day. Conversely, there are a lot of gr
