Yesterday Richard Schwartz and I met with a large 3PL to discuss helping them consolidate. This company is currently in two buildings totalling about 650,000 square feet. These are older buildings that are only 24' clear. Their hope is to consolidate their operation into one 450,000 - 500,000 square foot, 30' clear building. As we all know, you pay for industrial property by the square foot, not the cubic foot. A 30' clear building could allow you rack 1 pallet position higher, thereby taking advantage of the cubic space that a building offers. Many times a 30' clear building will go for the same rate as a 24' clear building. For some it makes perfect sense. In this instance this company may be able to reduce their overall square footage by as much as 150,000 square feet, but still be able to maintain about the same amount of pallet positions. Let's say that 150,000 square feet is worth $.30 per square foot. That is a monthly savings of $45,000 or a savings of $2,700,000 over five years!
If you would like to do a cost analysis of your low clear building versus a taller building just let me know!
Mitch 909-974-4054
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment