Sell for More News is a weekly blog series with interesting information from the world of commercial real estate.
A logistics company partly owned by Related Cos. is searching for locations across North America to build its multi-story robotic warehouses.
Robots – and humans – started working this month at Quiet Logistics’ new 440,000 SF fulfillment center in the Los Angeles area. It’s the firm’s first property on the West Coast, and a model for more the company aims to build near population centers. The goal being to get goods to consumers faster.
Quiet Logistics, which fulfills orders for fashion and lifestyle brands such as Bonobos, uses multi-level construction which is a fairly new concept for warehouses. Multi-level construction requires less real estate than traditional sprawling, single-story warehouses which is an advantage in urban areas where land is scarce and costly.
At the L.A. center robots will be able to travel long distances across the building and scale high shelves that are out of reach of humans. With the rise of same-day and next-day delivery options made popular by Amazon.com, this automation is necessary to meet the expectations of the company’s fashion clients, who have large customer bases in the L.A. area.
That doesn’t mean robots are taking over. In fact, the demand for fast fulfillment will require more human labor than ever before. Quiet Logistics aims to hire about 500 full-time employees who will work in tandem with the robots at the two-story center, the company’s fifth U.S. warehouse.
Related Cos. (known for its $25-billion Hudson Yards project on Manhattan’s West Side and a $2-billion mall) in March teamed up with Greenfield Partners to buy Quiet Logistics, extending the developer’s reach into e-commerce. The soaring popularity of online shopping has helped make warehouses the best-performing segment of the property market this year.
Eventually robots will be capable of moving boxes around a warehouse better than humans. It’s only a matter of time. Once those robots load the boxes onto an autonomous semi truck…then things really get interesting.
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About Beau Beach, CCIM
Beau is a tenacious Commercial Real Estate Broker, author and adoring father of four. His clients appreciate his no-nonsense demeanor and his legendary work ethic.
Beau leads Beachwood which is a commercial real estate broker for sellers in the Nashville, Milwaukee, South Florida and Chicago markets.
He’s the author of the books The 3 Reasons: Why Most Commercial Properties Don’t Sell and True Wealth: What Every Seller Should Know About 1031 Exchanges.
Beau can be reached at 800-721-3287, click to schedule a call or Beau@ProwessIRES.com