Ports – the key to site location for new wave of warehouse construction.
Warehouse space was scarce, and leases were high during the mid-pandemic years of 2021 and 2022. Companies reacted to the pandemic’s supply chain disruption and empty store shelves by carrying additional inventory, often referred to as “just in case” product, rather than just-in-time fulfillment. This led to an excess of warehouse space in 2023. The supply and demand for warehouse space began to stabilize in 2024, and some analysts predict that demand from certain market sectors, such as manufacturing, will rise in 2025.
However, the warehouses of today are also evolving, driven by market dynamics and changing consumer buying patterns. In 2025, there will continue to be an increase in warehouses being built near U.S. seaports. The need to offer faster delivery times while minimizing costs associated with high volumes of imported goods is a factor driving this trend. The continued growth in e-commerce is also impacting the design of warehouses, and technology is enabling the speed and accuracy required by today’s consumers.
Warehouses Are Increasingly Being Located Near Ports
A recent research study conducted by CoStar Analytics, a commercial real estate analytics firm, indicates that the number of ports within 30 minutes of a port has increased by 9.7 percent in 2025. According to CoStar, even in the area within a 30-minute drive of the Port of Los Angeles, where the density of existing properties has kept new warehouse construction limited, the total square footage of industrial space available for lease is at the highest level in recent history.
Miami, a major hub for global trade, has a warehousing capacity of 277 million square feet. Ryder System Inc., a supply chain services provider, works with customers in the technology and last-mile categories in Miami, facilitating the distribution of computer equipment and home delivery of furniture and exercise equipment.
Despite a more balanced alignment between demand and supply of warehouse space, some markets and ports, like Miami, are still constrained. Josh Haber, Group Director of Real Estate, Construction, Building Maintenance & Fuel Services for Ryder System, Inc., stated, “Warehouse space is a bit easier to take down than it was a few years ago, but Miami is still limited compared to the rest of the country. Similar-sized markets that are not constrained are growing at double the pace.”
Miami, the top trading partner with Latin America and the Caribbean, is constrained not only by available space to build warehouses, but physical barriers as well. Ryder leases and operates warehouses on behalf of customers using a team approach, according to Haber.
“A combination of real estate and construction professionals will survey the market for the most suitable and competitive options and bring those options to the customer for evaluation,” he explained. “Once a warehouse is selected, Ryder will build out a full-scale solution and negotiate lease terms.”
Public/Private Partnerships (PPP) One Way to Locate Warehousing on or Near Ports
While some customers may look to their supply chain partners to assist in achieving their warehousing goals, Port Everglades took a unique approach. A public-private partnership enabled the construction of the Port Everglades logistics center, which is approximately 240,000 square feet and includes office space, a refrigerated warehouse, and cross-docking facilities. The port also provides direct access to the interstate highway system and Florida East Coast Railway’s near-dock, 43-acre intermodal container transport facility for rail transport.
“A warehouse’s proximity to the port can reduce drayage time between vessel discharge and final delivery,” according to a Port Everglades spokesperson. “It also gives port users options for furtherance of their shipments, such as enabling quick transloading or cross-docking for time-sensitive goods such as perishables and e-commerce shipments.”
Port Everglades is also taking steps to reduce congestion on roads adjacent to the port. In 2022, the port installed trucker traffic cameras to improve traffic flows in the Southport containerized cargo area.
“This real-time video feed allows trucking companies to view traffic patterns and better manage the dispatching of trucks,” said a Port Everglades representative. “Additionally, two Southport cargo terminal customers launched appointment systems to help mitigate congestion.”
E-commerce Requires More, Smaller Warehouses in Locations That Support Faster Delivery
The continued surge in e-commerce is not only impacting where warehouses are located, but also the size and how they are constructed. According to CoStar’s research, demand is shifting toward smaller bulk spaces, with occupations under 500,000 square feet growing. The demand for spaces in the 300,000 to 499,999 square-foot range is up 23% in 2025.
E-commerce requires more, smaller warehouses, making it easier for companies to provide on-time last-mile delivery to their customers, regardless of where the product originated.
“The most successful warehouses need to handle multiple distribution channels to meet customer demands in a rising cost environment,” said Jeff Wolpov, Ryder’s Senior Vice President of E-Commerce. “This necessitates a focus on productivity and efficiency through mechanization, automation, and systematic improvements.”
Increased use of warehouse space to support e-commerce is reflected in a trend of companies subleasing storage space, rather than constructing new, larger warehouses. According to a report produced by the Interdisciplinary Supply Chain Research Organization (ISCRO) at Michigan State University, the amount of U.S. warehouse space being subleased reached a record high of 156 million square feet in the fourth quarter of 2023, over three times the amount available in 2021.
An enabler of the fast and accurate service that e-commerce requires is technology. According to Ryder’s Haber, “Warehouse technology has come a long way over the past decade. Many modern warehouses are equipped with some form of automation, whether it be robotics, conveyors, automated storage retrieval systems, warehouse management systems, and barcoding scanning.”
He notes that these technologies reduce labor costs, provide for faster order fulfillment, and improve efficiency. Technology also plays a role in how warehouse space is configured.
“As a result of newer technologies and machinery, aisle width can be reduced, allowing for more floor space and utilization,” Haber said. “Many new construction warehouses specify higher ceiling heights. What used to be a 28’ or 32’ ceiling height is now 40’, allowing for taller racking and increased inventory.”
The Warehousing Industry is Transforming to Meet Market Demands
Warehousing, like most aspects of the supply chain, continues to evolve. As consumers expect faster deliveries, whether purchasing in stores or online, the supply chain providers that serve them are finding ways to streamline operations, including warehousing. By locating facilities near ports, leasing smaller warehouses, and utilizing technology to drive efficiency in operations, today’s warehouses are transforming to meet market demands in 2025 and beyond.
