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2019 Promises Continued Strain on Industrial and Warehouse Space

Industrial and warehouse space is at a premium in many parts of the US and the trend is expected to continue into 2019. With urban density rising and costs of construction increasing, along with still expanding industrial and manufacturing sectors and other pressures, finding available and usable warehouse and industrial space is growing more difficult. Vacancy rates are expected to continue to fall, putting a squeeze on rents. Manufacturers and warehouse operators struggle to find adequate and affordable space where and when they need it. But there is a solution to the space shortage. Highly versatile industrial fabric buildings are one-way businesses obtain needed capacity despite difficult market conditions. They are a smart, fast solution in an industrial real estate market that is expected to continue to be tight for the foreseeable future.

Increased Demand for Warehouse and Industrial Space

Big Distribution Center Logistics Warehouse Building Interior

With the explosion of e-commerce retail, the demand for warehouse space for storage and distribution of merchandise is especially high near seaports and in urban hubs and transportation centers. E-commerce companies like Amazon use smart data to help them identify ideal locations for their facilities, places where transportation costs are most efficient and a labor force readily available. The most highly desirable geographic areas are already densely populated and built out, leaving companies who are looking for space at a loss as to where and how to obtain usable warehouse and industrial space. Rents in some areas have increased significantly, locking smaller firms out of expanding in geographically advantageous areas.

Retailers Returning to Brick and Mortar

Among the strains on available retail and warehouse space is a realization by retailers that a traditional brick and mortar presence is still valuable as a way to build and maintain their brand and generate foot traffic that becomes a loyal customer base. Old retail facilities are being renovated to make room for small and large retail operations. This positive trend for retail businesses puts an overall strain on available buildings and land for use for warehousing, storage and manufacturing structures in places where demand for space in general is already high.

Rising Construction Costs Make New Construction More Expensive

construction site including steel structure and crane

A number of factors are putting pressure on the cost of new construction, making the decision to invest in a new traditional building project more difficult. Construction labor shortages due to a booming economy, combined with lower immigration, have made it hard to find both skilled and unskilled labor for construction jobs. In addition, recent major storms in regions of the country have siphoned off construction talent to areas undergoing massive rebuilding. And, beyond the labor issues, new tariffs imposed on imported building materials like steel, aluminum and lumber have raised the cost of materials for builders. Uncertainty in the supply of labor and the availability and cost of building materials is making it hard for companies to plan new construction projects.

Aging Economic Expansion Raises Risk for Investment in Buildings and Real Estate

Red and White Trailer at a Docking Bay of a distribution centre ready for Transport

Now in the tenth year of economic expansion, economists agree the U.S. economy is in for a correction. Experts disagree on the depth and extent of the retraction, but real estate investors, employers and businesses are taking into account the risks of an economic downturn. While businesses are embracing new technology and factory automation as long-term competitive advantages, they are growing more cautious in making decisions to invest in area like real estate and new construction that may become burdensome in a slow economy.

Industrial Fabric Buildings Fill in the Gap in Warehouse and Industrial Space

tension fabric construction shelter housing an 18 wheeler truck carrying load of dirt

Industrial fabric buildings are one way that companies are filling the gap in their manufacturing and warehousing capacity. In uncertain times with rising costs and increasing economic risk, prefabricated fabric buildings function like traditional brick and mortar structures, but at lower operating cost and reduced long term risk. The tensile-strength design is reinforced with a highly engineered extruded aluminum frame, providing wind and weather-proof stability and durability. Rust-free, UV resistant and energy efficient, the buildings enjoy low maintenance costs. The clear span, high clearance building can be quickly installed in the size and configuration that meets the user’s needs. The versatile structure can be modified with different accessory options, and the size of the structure reduced or enlarged to maintain efficient use as needs change.

Industrial fabric buildings do not require a building foundation. They are perfect solutions where space is at a premium. With a variety of anchoring solutions available, they can be erected on unpaved ground, parking lots, turf, frozen ground, even wet, rocky or uneven surfaces. They can be configured with a variety of doorways, including rollup overhead cargo doors and freight doors that allow the movement of vehicles and large loads, or glass or steel personnel doors for employee entrances. These buildings are easily configured with power, lighting, HVAC, overhead truss or signage, and other features of a traditional building.

Among the many applications for industrial fabric buildings are:

  • Construction – cover the construction worksite and structures from wind, snow and rain
  • Warehouse – storage space for inventory, supplies, equipment, vehicles
  • Environmental Remediation – cover to isolate and contain the work site
  • Oil & Gas Structures – many uses, including man camps, equipment maintenance, storage and weather protection
  • Aviation – expand hangar space at airports and AOG
  • Mining and Energy – on site shelter for crews, equipment, aircraft, maintenance and storage
  • Manufacturing – large clear span warehouse space configured to maximize efficiency

Cost-Effective Solution for Industrial, Warehouse and Manufacturing Space

Engineered fabric building on concrete foundation with rollup cargo doors

Industrial fabric buildings can be leased short or long term as temporary or permanent solutions to space needs, providing financial and logistical flexibility in a changing economy. They can be delivered and installed within weeks of order, and can be easily relocated or removed when needed. Because they are reusable and modular, they are quickly up and running. They don’t require an investment to install a foundation, or incur the significant cost of labor and materials of traditional construction. In tight, high rent areas, they are a cost-effective way to gain the extra space needed. With operations up and running faster, the business can profit from added capacity sooner. And, in case of a business or economic downturn in which the extra capacity is no longer needed, the building is removable and the land can be returned to previous use.

Allsite Structure Rentals a Leader in Industrial Fabric Buildings

Allsite Structure Rentals is a leading manufacturer of industrial fabric buildings serving the North America market. Structures are available in various widths and custom lengths, and can be customized for your application. For more information, contact Allsite Structure Rentals at 888-599-5112.

Author Peter Milligan

Peter Milligan is a Business Development Manager at Allsite, with degree in Psychology from Lafayette College and 14 years experience in matching customers with Tension Fabric Structure solutions. Read more about Peter and the rest of our team at

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