How Supply Chain and Logistics Drive Site Selection

Originally published on October 12, 2022, by Ed Finkel for NAIOP.

Supply chain, logistics and transportation play a major role in site selection for industrial real estate, which has been disrupted along with many other economic sectors by the COVID-19 pandemic but remains in a strong position overall, said Adam Roth, CCI, SIOR, executive vice president of NAI Hiffman, at CRE:Converge 2022.

Corporations make site selection decisions by balancing the costs of industrial real estate with the percentage of suppliers and consumers they want to be able to reach same day and next day. They make algorithmic calculations that result in hub-and-spoke supply chain maps outward from central nodes where warehouses are located, Roth said.

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