WAREHOUSES AND WAREHOUSE SPACE Experts predict that businesses will struggle to find additional warehouse space through the end of 2023 because of low vacancies and higher rent. This may limit some 3PLs’ ability to grow, as brands increase inventory levels taking up the precious little available space 3PLs currently have to mitigate any supply chain concerns. In some cases, brands have asked their 3PLs to stock a surplus of slow moving inventory, making the warehouse capacity crunch even more acute. This year, 39% of 3PLs identified adding warehouses in new locations as one of the most significant opportunities in the coming year, while 35% identified finding available warehouse space as one of their biggest challenges. Let’s examine the current warehouse space and capacity footprint. Eighteen percent (18%) of 3PL respondents have more than six warehouses, while 47% have two to five, and 35% have one warehouse. Fifty-one percent (51%) have less than 100,000 square feet of space, 21% operate between 100,000 and 250,000 sq. ft., and the remaining 28% have more than 250,000 sq. ft. 2022 Third-Party Logistics Warehouse Benchmark Report | 18