Imagine a bustling city where goods need to move quickly from a distribution center to your doorstep. Every minute counts, and every mile traveled adds to the cost and time of delivery. This challenge is at the core of modern supply chain management, and it highlights why the strategic placement of industrial facilities has become paramount.
The accompanying video provides an excellent overview of Link Logistics’ unique approach to industrial real estate, emphasizing their focus on infill locations. This strategy is not merely about acquiring properties; rather, it is about positioning assets precisely where they can offer the most value to customers and consumers alike.
Understanding the Power of Infill Industrial Real Estate
Infill industrial real estate refers to properties located within or very close to dense urban areas. Historically, many industrial facilities were built on the outskirts of cities where land was more plentiful and less expensive. However, with the explosion of e-commerce and the demand for rapid last-mile delivery, the paradigm has shifted significantly.
Consequentially, businesses today are increasingly prioritizing locations that minimize transit times and reduce operational complexities. An infill strategy is therefore centered on placing facilities closest to the end consumer, ensuring that products can be delivered quickly and efficiently. This approach is considered vital for meeting the expectations of today’s demanding market.
Strategic Locations: Proximity to the Consumer
As highlighted in the video, Link Logistics strategically places its assets in the most important US logistics markets, and crucially, within the most important submarkets. These are infill locations, often situated near dense urban cores. Such proximity allows for optimized last-mile delivery operations, which is the final, and often most expensive, leg of the supply chain journey.
Consider a scenario where a company operates a distribution center an hour and a half away from a major city. Every delivery truck must traverse significant distances, battling traffic and increasing fuel consumption. Conversely, if a facility is within an hour’s drive of the city center, as Link Logistics prioritizes, substantial savings in time and cost can be realized. Furthermore, customer satisfaction is often enhanced due to faster delivery times.
Modern Facilities for Evolving Logistics Needs
Beyond location, the quality and capability of industrial facilities themselves are critical. Modern logistics operations demand sophisticated infrastructure that can accommodate advanced technologies, efficient warehousing processes, and a high volume of throughput.
The properties within an infill strategy are typically newly built, Class A, and state-of-the-art facilities. These are designed to meet contemporary logistic requirements, from accommodating automation to supporting complex inventory management systems. Such cutting-edge infrastructure is essential for businesses looking to maintain a competitive edge in rapidly evolving markets.
Leveraging Data for Superior Investment Decisions
The process of identifying and securing prime infill industrial real estate is not left to chance. It is a highly analytical endeavor, powered by robust data and insights. Proprietary data and advanced technology platforms are utilized to determine the most strategic locations for investments.
A dedicated data team, described as “second to none” in the video, plays a crucial role in gathering and analyzing real-time information. This data-driven approach enables informed investment decisions, ensuring that properties are acquired in high population growth areas and submarkets that offer the greatest long-term potential for customers.
Addressing the Scarcity of Mid-Size Industrial Assets
A significant trend in the industrial real estate market is the growing scarcity of properties within certain size ranges. While some developers tend to construct very large facilities, often exceeding 500,000 square feet, there is a notable gap in the market for mid-size assets.
Specifically, the video mentions a “huge scarcity of product” available between 100,000 to 200,000 square feet. This segment is highly sought after by many businesses, particularly those engaged in specialized distribution, light manufacturing, or last-mile logistics who do not require colossal footprints but still need significant operational space. Consequently, an infill strategy often focuses on acquiring or developing these high-demand, mid-size properties.
Benefits Beyond Delivery Speed: Access to Skilled Labor
The advantages of infill locations extend beyond mere proximity to consumers and faster deliveries. Another crucial benefit, often overlooked, is improved access to a skilled labor pool. Locating facilities within or near urban centers means that employees typically have shorter commutes, making these positions more attractive.
Consider the competitive landscape for logistics talent. If a facility is located far outside metropolitan areas, it can become challenging to attract and retain the necessary workforce. In contrast, an infill location can significantly broaden the talent pool, providing better access to the skilled labor required for modern warehouse and distribution operations. This advantage directly contributes to operational efficiency and reduces labor-related challenges.
The Link Logistics Portfolio: A Commitment to Excellence
With a vast portfolio comprising more than 3,500 properties, Link Logistics’ commitment to their infill-focused strategy is evident. This extensive network of assets is meticulously managed and continuously optimized to serve customer needs.
The overarching goal remains clear: to own, operate, and build the best industrial facilities in the best submarkets with the best infill locations. This dedicated approach ensures that businesses are provided with the right amount of space in ideal locations, thereby supporting their growth and operational objectives in the competitive landscape of industrial real estate.
Demystifying Infill Logistics: Your Questions Answered
What is ‘infill industrial real estate’?
Infill industrial real estate refers to properties located inside or very near busy city areas. This strategy helps businesses deliver products quickly and efficiently to customers.
Why do businesses prefer infill locations now?
Businesses prioritize infill locations to minimize travel times and reduce operational costs, especially for last-mile delivery. Being closer to urban areas allows them to deliver products faster to the end consumer.
What kind of industrial facilities does Link Logistics focus on?
Link Logistics focuses on newly built, Class A, state-of-the-art facilities. They also aim to address a market need for mid-size properties, typically between 100,000 to 200,000 square feet.
How does Link Logistics choose where to invest in properties?
Link Logistics uses a data-driven approach, employing proprietary data and advanced technology platforms. A dedicated data team analyzes real-time information to make informed investment decisions in strategic locations.
Are there other benefits to infill locations besides faster delivery?
Yes, infill locations also provide better access to a skilled labor pool. Being near urban centers makes it easier to attract and retain employees for modern warehouse and distribution operations.