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Warehouse construction on the rise in Virginia

11/16/2016

Warehouse construction on the rise in Virginia

Like many parts of the country, demand for warehouse space - and workers - has been on the rise in Virginia for some time now. Indeed, with a large and growing number of new projects getting underway in the Old Line State, the need for the most qualified workers is likely to keep rising there for some time to come.

For instance, the Fredericksburg Regional Alliance recently announced speculative plans to add further development in its area across a number of industries, including warehouses, according to a report from the Fredericksburg Free Lance-Star. In fact, 64 percent of all interest in development now rests with industrial warehouses specifically, and there has already been significant interest in building more facilities just to meet that high demand.

A problem for the whole state
In fact, demand for industrial warehouse space has been so significant across the entire state of Virginia that it's something the Fredericksburg region sees as an opportunity, the report said. By starting construction on more facilities, for which there are not yet any tenants, the area could find itself attracting a lot of interest in the near future.

"With a little bit of luck, we're actually going to run out of existing buildings on the warehouse and industrial side in the region. We're probably going to have to start talking about some spec construction in the region," FRA president Curry Roberts told attendees at a recent local event, according to the newspaper. "We have some interest in spec industrial development."

Another existing facility sells
Meanwhile, about an hour up Interstate 95 in Alexandria, Virginia, an existing warehouse property sold for $3.85 million, according to the Old Town Alexandria edition of the local news site Patch. Currently, the space - measuring some 35,000 square feet - has 76 percent lease occupancy through five different tenants. The property's buyer says its initial focus is on leasing the remaining one-quarter of the space before focusing on other aspects of developing the space.

"We saw a major opportunity to acquire an industrial/flex asset that is virtually nonexistent in Alexandria," said Teddy Kim, principal of the holding company that made the purchase, according to the site. "As we researched further, we realized the future value points toward a redevelopment strategy, and we are currently exploring options."

With this kind of development in mind, it's vital for those in warehouse staffing to make sure they're able to reach the best workers in their field with high-quality benefits and strong hourly wages.