Increased need for more and larger warehouse space

Increased need for more and larger warehouse space

Observer Business Writer

Wednesday, September 16, 2020

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There has been a general increase in the size of warehouses being built as more investors look to utilise the vertical space in their environment.

These new facilities are being built out mainly in St Catherine, which has cheaper land and still have access to the major part of the population.

These investments have become much more advantageous to businesses with the widening and expansion of Hagley Park Road which should increase ease of access to the major ports and ships.

Those are the views expressed by business consultant Dr Stanley Morgan while speaking at a Kingston Properties-sponsored digital real estate seminar.

“Before the pandemic, larger warehouses were being constructed by manufacturing and distributing companies which needed greater space.

“In the late 1990s, a large warehouse would be approximately 60,000 square feet while a typical warehouse today is approximately 200,000 square feet.

“New supermarkets don't make sense below 60,000 square feet as people want space. Over 45 per cent of the population lives between Kingston and St Andrew and St Catherine. Concentration and siting would be closest to major markets. Our major ports of entry are located on the southern end of island near Kingston,” Dr Morgan said.

In closing the seminar, Dr Morgan said real estate will become more dynamic going forward.

“Energy is never destroyed but converts from one form to another. Real estate will always be something that is demanded. Technology will continue to force manufacturers, producers, retailers to look and repurpose space.

“Large mall spaces in the US are being turned to distribution centres as more businesses go online.

“These changes may disrupt how we currently operate in our space, but those disruptions are going to create opportunities for redevelopments and repurposing of that space for other activities,” Dr Morgan ended.

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