Tag Archives: Distribution Center Design

Industrial Distribution Networks Evolve to Accommodate E-commerce [REPORT]

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By: JC Pelusi, Great Lakes Market Director at JLL

Largely due to emerging markets, B2C e-commerce spend will hit $1.5 trillion in 2014, according to a recent study from eMarketer.

Online shopping is the ultimate convenience. And thanks to evolving distribution center design and strategy, retailers are able to deliver online orders in a timely fashion. So, how have retailers evolved the structure of industrial real estate to meet consumer expectations? Below, JLL researchers recap the evolution of retail logistics over the past 40 years.

See JLL's whitepaper, E-commerce Boom Triggers Transformation in Retail Logistics, for details.
Along with looking back across the last four decades, JLL’s retail team also looks ahead to answer the question on the minds of many in industrial real estate: What’s on the horizon?

According to JLL’s recent whitepaper, E-commerce Boom Triggers Transformation in Retail Logistics, a new class of retail distribution centers has emerged, including a variety of distribution and fulfillment centers, hubs and warehouses. Below we’ve outlined three of the top trends driving change in retail logistics facilities.

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3 Demands Driving Distribution Center Design

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By: AJ Magner, Managing Director at JLL & Joe Messina, Senior Vice President at JLL

Parts of Ohio, Michigan and Pennsylvania are home to major distribution centers, including Procter & Gamble, Eddie Bauer, lululemon athletica and, tentatively, Amazon.com. Thanks to accessible highways, an inventory of economical land opportunities and the historically low-cost labor markets, the region houses prime real estate for warehouse facilities.

Distribution centers are the backbone of retail industry operations. They are at the core of all product management, inventory, storage and shipment.

According to JLL’s researchers, recent advancements and trends have influenced layout designs of warehouse facilities to change. Stay ahead of the game, and ensure your warehouse operations are up-to-speed by investigating the top demands driving design concepts for distribution centers.

Top Demands Driving Distribution Center Design

Demand 1: Sustainability Keeps Costs Down 

To account for inherent transportation costs, and also balance out the escalating prices of fuel costs and wages, energy efficiency has moved to the forefront of design. Skylights, LED lighting, daylight harvesting and solar panel installations help to conserve energy and cut costs, requiring less electricity to illuminate the facility. 

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