The e-commerce continues to create greater demand for warehouse space. As the technology and labor force required to manage the supply chain continues to evolve, investors will need to revamp triple net properties to meet tenants’ needs.
Here are some of the amenities experts anticipate will be in demand.
More Employee Amenities
E-commerce warehouses employ large numbers of employees sometimes numbering in the thousands. And while Amazon has a fairly harsh outlook towards its employees, other companies have been more mindful of the need to retain employees for as long as possible.
As a result, some companies have added fitness gyms and lounges to the workplace, as well as healthy eating options. Some companies have even added daycare centers, relaxation lounges, and even rock climbing walls in an attempt to retain skilled employees.
Extensive safety precautions are also important. Features such as additional cameras and lighting, particularly around dock areas and equipment, also make for a better triple net workplace.
These companies have discovered that overall expenses are reduced, and profits go up when workers are motivated. And given the tools, they need to stay healthy emotionally and physically.
Employees who are unwell physically or emotionally cost companies millions of dollars a year in health costs and lost productivity. In fact, Johnson and Johnson saved $250 million over six years by implementing a wellness program.
Thus, addressing employee needs makes good sense for companies, and translates into extra profit for investors who add these amenities to triple net properties.
Fast and efficient supply chains are essential for e-commerce warehouses, and one of the best ways to accomplish this goal is through technology.
The Internet of Things isn’t limited to objects around the house; it’s being used in warehouses too. By using technology to connect various operations and machines, companies can accomplish more in less time and with less effort.
For example, some are using robots to extract products from storage. The item is then brought to a person, who then readies the package for shipment. This process ends up being more efficient than the traditional model of a person traveling around large sections of the warehouse in order to assemble all the parts of a customer’s order.
Other companies are using drones for delivery, to itemize inventory, and to pick and pack orders. In fact, a recent report revealed that warehouses who use these types of automation see an increase of productivity by as much as 5 – 6 times than when the work is done by hand.
Specialized software is also making its way to warehouses.
Since knowing exactly how much product you have, and at which warehouse it is located, as well as how much it will cost to have it shipped straight to the person instead of another warehouse, can make a significant difference in expenses.
All of these technologies place a heavy load on the power system of a warehouse. So it’s critical that owners ensure there is a power system strong enough to handle the increased electrical supply. Equally important is the need to ensure your triple net property has enough infrastructure to support wireless technology.
Don’t Forget Sustainability
Sustainability is more than a buzzword nowadays; it’s a proven way to connect with consumers, reduce expenses, and increase profits.
This is especially true with supply chains, where eco-friendly environments – in particular, the use of energy efficient LEED materials – can have a huge impact on a company’s bottom line.
Reducing energy saves money on utilities. Automated HVAC systems that only work when employees are in the building, timed lighting systems, water conservation systems in employee restrooms – are good for both the planet and the company. Plus, consider that implementing LEED measures into a business can save hundreds of thousands of dollars a year.
There’s no question that modern amenities make a difference when attracting premium tenants to an industrial triple net property. As a long-term strategy for financial success, industrial triple net properties present an excellent opportunity for investors.