Warehouses Super-Size to Meet e-Commerce Demand

Retailers are building warehouses topping 1 million square feet, a size that was unheard of a few years ago

The Wall Street Journal

Oct. 20, 2015—Warehouses are getting super-sized as growing consumer demand around the world pushes the limits of logistics capacity.

Industrial real estate analysts say that, in recent years, an increasing number of massive distribution centers have popped up in response to growing e-commerce. As online sales become a larger portion of revenue for vendors, the companies require more manpower, machines and storage space to handle high volumes of smaller packages.

The distribution centers where manufacturers and retailers store, package and ship out products are increasing in size around the world. The biggest facilities have doubled in the last 10 years to top 1 million square feet in the U.S., and have grown to similar sizes in Europe and China, according to new report by commercial real estate brokerage Colliers International Group Inc., which published the new report.

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