As e-commerce demand continues to grow, built-to-suit warehouses are becoming more and more popular. But what is a built-to-suit warehouse and why are they so valuable for e-commerce retailers and logistics companies alike?
In this article, we’ll tell you everything you need to know!
A built-to-suit warehouse, as the name suggests, is a type of warehouse that is designed to suit a specific client and meet certain requirements. These are developed and let out by warehouse and factory development companies to lessees and customised accordingly.
The developer will share all of the design and construction elements in the beginning for the client to review and agree upon. Once everyone is satisfied, the construction begins. Following that, the client will rent the warehouse space for an agreed term with the potential for renewal in the future.
The customised design is brought to life, providing dynamism and flexibility to the client, meeting all of their requirements and allowing them to handle their logistical needs with greater ease.
This new method of warehouses is excellent because it allows companies to rent storage space that is quite literally perfect for them – rather than having to make sacrifices when searching for a reasonable warehouse in a reasonable location.
While there are many traditional ‘brick and mortar’ retailers left, the majority are going entirely online and switching to e-commerce instead. Certainly, there are those who will always prefer walking around a physical store, however, in a post-covid world, more and more people are turning online for their shopping needs – including their groceries and medication.
This is largely why built-to-suit warehouses are growing in demand and will continue to do so; in the US alone during 2021, e-commerce sales grew by a whopping 50% ($870 BN)! With more orders being placed online, there had to be more effective warehousing and supply chain management.
The fact is, built-to-suit warehouses are becoming more popular because they can be designed and developed to meet the specific needs of the tenant – while promoting strong future growth. Businesses want to keep up with their customers growing demand for speedy deliveries and a well-optimised warehouse is an essential part of that process.
When developing a BTS warehouse, there are a number of important considerations for the client, for example:
What is it about built-to-suit warehouses that is so attractive to e-commerce businesses? What advantages can they bring?
Built-to-suit warehouses are the perfect solution for businesses that want to have practical warehouse space that has been designed especially for them. It’s certainly cheaper than finding an existing warehouse and then having to pay to make all of the necessary changes in order to accommodate your needs.
As the world of e-commerce continues to grow and customers become more and more demanding with the speed and efficiency of their deliveries, businesses need to adapt and overcome the most common supply chain challenges; having a well-optimised warehouse in an advantageous location is a great place to start!