Determining max cubic storage efficiency and solving for future growth needs

Situation

Nearly Natural was experiencing operational inefficiencies due to occupying older low-ceiling warehouses. They had multiple leases with varying lease expirations and expected strong future growth.

Strategy

• Determined size requirements based on the number of pallets and their positions.
• Developed a plan based on new warehouse ceiling heights.
• Identified a suitable property with enough cubic storage capacity to maximize its efficiency and minimize its footprint.
• Negotiated a deal where the tenant growth trajectory can be accommodated within the same industrial park over the next 5 years.
• Subleased or negotiated an early termination of the tenant's existing warehouse facilities (as the new space becomes available) to minimize exposure to existing lease obligations.

Results

Identified ideal industrial park with required ceiling height to achieve maximum racking efficiencies (32'), which was accommodated in a master-planned park with expansive land slated for future growth and development. Additionally, the existing tenant spaces were optimized for profitability via subleasing and early termination.