Warehouse Demand on the Rise Amid Online Sales Increase

Demand for warehouse space is increasing across the nation, and many economists believe it’s here to stay.


“To ensure inventory levels are adequate to quickly meet demand, retailers in demand, such as grocery and discount stores, will insist vendors keep higher amounts of merchandise in stock, thus increasing the demand for warehouse space,” a recent National Real Estate Investor article reports. “Increasing demand for goods bought online, especially food, will also fuel the need for distribution facilities at a pace that’s higher than the market has seen previously.”


In other words, as retailers increasingly face product shortages due to the ongoing global COVID-19 pandemic, the need for additional space to store supplies grows. Per the Wall Street Journal, lease renewals and new leases for industrial space climbed 43% between mid-April and mid-May despite the economic fallout caused by the spread of the novel coronavirus.


Demand for warehouse space totaling 100,000 square feet or more is particularly high, WSJ reports, with the increase in online shopping brought on by the pandemic causing many retailers to seek out new places to store their goods.

Durable, economical and highly customizable, pre-engineered steel buildings make ideal warehouse environments due to their large widths and lengths. They’re also available in both clear-span and multi-span designs; the latter of which is often a more affordable option.

Many of our metal warehouses can undergo repurposing after-the-fact to hold multiple tenants or allow for commercial rentals. We can also design them to do so up front, which can create a steady and substantial revenue stream for you, the building owner. Whatever your project needs, our engineers can work closely with you to ensure your metal warehouse accommodates them while adhering to any building codes in place in your area. 

Written By:

Doug Kiser

Senior Accountant Consultant
Sunward Steel Buildings, Inc