Logistics companies are increasingly reassessing their warehousing strategies as rising real estate costs impact operational expenses in major hubs worldwide. In markets like Los Angeles, Shanghai, and Rotterdam, high demand for prime logistics facilities has pushed warehouse leasing rates up by nearly 20% over the last year. Companies such as SEKO Logistics and OIA Global are seeking alternative storage solutions, including shared warehousing, micro-warehousing, and increased use of technology to optimize space use.
SEKO recently piloted a shared warehousing initiative where multiple companies use the same warehouse space, benefiting from lower costs without compromising storage needs. Additionally, automated warehousing systems have become a priority as companies look to store more goods within a smaller footprint. With robotics and AI-led space management, companies like OIA Global are achieving faster pick-and-pack times, reducing the square footage needed per pallet.
These trends indicate that logistical flexibility, including innovative warehousing strategies, is key to managing the increased costs without passing them directly onto customers. The industry is watching this space closely, as more companies invest in automation to counter rising facility costs.
