Posted by: J. Michael Hoeck, SIORIndustrial Specialist
775 336 4621
Mike began specializing in industrial brokerage with Colliers International in 1999, and in May 2005, joined Alliance Commercial as a Partner and as Vice President of its Industrial Properties Group. In May of 2007 Alliance Commercial became NAI Alliance and Mr. Hoeck became a Senior Vice President.
Recently the Journal of Commerce published Driving DCs Inland, referring to the movement of automated warehouses inland and away from high warehousing rent of major population centers. According to Forest Research, “U.S. e-commerce should expand 10% annually to $279 billion by 2015;” meaning that more of these automated centers are going to be needed in the near future. Companies are looking for warehouses in states such as Nevada, because of their cheaper labor rates and ease to access large population areas within two days. Northern Nevada has a business climate featuring business friendly tax structures, abundant labor, affordable housing, and a great quality of life. Twenty-five of the top 100 3PL companies operate in Northern Nevada. The large e-commerce companies “employ five to ten times more employees then traditional DC” and many times in these areas people who work for the distribution companies have prior experience. Overall, e-commerce companies are starting to follow the trend of moving their DCs inland and seeing the potential it could hold for their future.
Information provided by The Journal of Commerce Magazine, March Issue.
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