Warehouse Blog

2009 St. Louis Industrial Real Estate Market Forecast

Allen Klippel, SIOR, First Vice President, CB Richard Ellis, gives commentary on the dominant trends in the 2009 St. Louis industrial real estate market. He also discusses the impact of this paradigm shift in the industrial market.

“Over the last several years, St. Louis, MO has become recognized as a distribution hub for such fortune 500 companies as Dial, Unilever, Proctor & Gamble, Hershey Foods, Save-A-Lot, companies supplying the Chrysler & GM plants have also been a positive factor in our market. The economic slow down has put the brakes on facility expansion for many big name companies and auto manufacturer’s are starting to give back space as well. But we still see local and regional companies anywhere from 25,000 to 50,000 square feet active in the market.”

As for the impact of the paradigm shift on the industrial market, “Most notable may be the over built situation that we currently have in the big box distribution projects. Even as demand began to slow, local and national developers continued to build. Today there are a number of state of the art distribution center buildings ranging in size from 200,000 square feet to 500,000 square feet available for lease. With a halt in new construction it is our opinion that supply and demand will balance in the foreseeable future and that this excess warehouse capacity will disappear. But I believe that today, matter of fact right now today, is a historic opportunity for tenants in the market place.”

 

What are the hot spots in the industrial market right now?

USDA Voluntary Food Security Guidelines Call For Folding Security Gates

I got a call from the plant manager at a food processing plant and he told me that the United States Department of Agriculture was mandating that he add folding security gates to all of the dock doors and man doors in his warehouse in an effort to protect the food supply. He was wanting to buy folding scissor gates and woven wire partitions to secure his building. Folding security gates are a very seasonal product. We sell lots of these gates in the spring and summer months. Steel folding gates are used for ventilation, visibility and access control. They provide the ability to secure receiving doors, lift-up doors, entranceways, hallways and more.  

Out of curiosity I contacted the USDA and spoke to a nice gentleman that told me the USDA does not mandate these changes. The USDA recommends that companies make food security part of their business plan. I was told that after 9-11-01 in an effort to improve homeland security, The USDA's Food Safety & Inspection Service (FSIS) offered a set of security guidelines for food processors. This was intended to protect the nations food supply from terrorist attack. The USDA asks food processors and food distributors to consider food security and draw up voluntary plans. The USDA offers an industry self-assessment checklist for food security. This USDA Food Security Checklist covers the following subjects:

Food Security Plan Management

Outside Security

Inside Security

Slaughter & Processing Security

Storage Security

Shipping & Receiving Security

Water & Ice Supply Security

Mail Handling Security

Personnel Security

Kathy Boyer's Delectible Chocolate Chip Cookie Recipe

Today I was day dreaming about the chocolate chip cookies my best friend's mother use to make when we were kids. The cookies were always the perfect blend of soft, crunchy and chocolatey goodness. So I called Mrs. Boyer today to ask if I could share her secret chocolate cookie recipe with you and she obliged. Thanks Mrs. B. You will thank me after you make these cookies. Please comment back and share your favorite cookie recipes.

Mrs. Kathy Boyer's Soon To Be Famous Chocolate Chip Cookie Recipe:

2-1/4- Cups of all purpose flour

1- Teaspoon baking soda

1- Teaspoon salt

1- Cup margarine

3/4- Cup packed ground sugar

1- Teaspoon vanilla extract

2- Eggs

2- Cups of Nestle Toll House chocolate chips

3- Cups of Kellogg's Rice Krispies

Mix together into a thick batter. Roll into cookie shaped balls. Bake at 375 degrees for 10-13 minutes. Enjoy.  

Wire Partitions Designed To Meet DEA Requirements

Wire partitions can be designed to meet DEA specifications. Over the years I've supplied D.E.A approved woven wire partitions to some of the nations largest pharmacuetical companies including Forest Pharmaceutical and KV Pharmaceutical. These companies use these wIre mesh partitions as security cages for storage of controlled substances in their warehouse.

When properly installed our woven wire partitions meet the US Drug Enforcement Administration’s requirements for physical security of Schedule III through V controlled substances as outlined in Title 21 CFR Sections1301:72-1301.76 physical security controls.  DEA security cage installations have the following notable features:

Doors must be self closing and self locking.  We offer a number of standard and custom lock options to meet this requirement, as well a line of self closing doors with mechanical and powered operators.

Walls constructed of not less than No.10 steel fabric with openings not more than 2-1/2" across the square, mounted on steel posts, set no more than ten feet apart, with horizontal reinforcement.  Our standard panels are maximum ten feet long, four or five feet tall, and are made of 2" x 1" opening 10 gauge steel wire.  The frames of our panels satisfy the requirement for horizontal reinforcement every sixty inches.  

Walls shall be mounted to posts at least one inch diameter, lagged to the floor.  Standard posts are 2" square with base plates for floor anchoring welded to each.  Lag bolts need to be pinned or brazed once installed.

Shall have a ceiling of same materials, or erected to reach the structural ceiling of the building.  Our system uses the same panels in walls and ceilings.  Furthermore, our system is so strong panels can be stacked between posts to reach most any building ceiling. D.E.A. regulation does not allow gaps between the enclosure and the building structure. Angle frame panels can be made with cutouts to fit your building structure, or they can be modified in the field by the installer.

Mecalux To Execute 30 Million Dollar Purchase Agreement Of Interlake Assets

The largest pallet rack manufacturer in the world, Mecalux Group, has acquired the largest rack manufacturer in the United States, Interlake Material Handling, Inc. out of bankruptcy. After the acquisition the American division of Mecalux will be known as Interlake Mecalux. Together they will become one of the world's leaders in capacity and technology in the storage industry. The following is from a Mecalux press release dated  March 6th, 2008:

The purchase, which totals 30 million dollars, includes the acquisition of the companies of UFC Interlake, the commerical network, all industrial properties, patents, trademarks, technology and the four plants for the American expansion of Mecalux: Pontiac, IL; Sumter, SC; Mexicali and Matamoros, Mexico.

Advantages To Underground Warehousing: Out Of The Way Batman

In 1996 I had the pleasure of racking Kuna Meat's new warehouse and distribution center located in Bussen underground warehouse. It was the first time I had ever been in an underground warehouse. The warehouse space was very clean, bright and state of the art. Not like what you might expect in an underground cave. You will be amazed at the many advantages you will find in underground warehousing and storage.  

The Bussen Underground Warehouse is located in south St. Louis county, MO. According to their website, "The Bussen Underground Warehouse is a limestone mine that was engineered and mined for the specific purpose of creating a climate controlled warehouse. The constant year-round temperature within finished space is between 65 and 72 degrees. It provides an ideal working temperature for your employees. Several tenants have added cooling capacity to bring the temperature down to zero degrees for freezer space, or 35 degrees for cooler space. They have enjoyed utility savings of up to seventy percent!"

Dave Pile with the Truckers Connection had written a wonderful article called "Trucking Underground" on TheTrucker.com: "

When you think of an underground cave, what image comes to mind? Do you envision stalagmites, dampness and nocturnal creatures? Maybe even Batman’s subterranean headquarters, a secret government warehouse that stores evidence of extraterrestrial life, or maybe an old haunted mine?

Welded vs. Bolted Bracing On Pallet Rack Uprights

For many years pallet rack with welded bracing had been the preferred choice for North American companies. Rack with bolted bracing was used by Europeans and the rest of the world. We're now seeing a major change in the pallet rack industry as two of the largest rack manufacturers in America are manufacturing uprights with bolted bracing. The reason? Reduced manufacturing cost. Which is better? In my opinion they both are equally as good. Tear drop uprights with factory bolted bracing utilize grade 5 serrated lock nuts and are manufactured to RMI (Rack Manufacturers Institute) specifications.

I'd like to address a common misconception about teardrop uprights with bolted side bracing. The teardrop uprights with bolted bracing are assembled at the factory and require no additional assembly. They are not shipped knocked down requiring assembly. They are shipped fully assembled just like teardrop uprights with welded bracing. Only at the customers request would the uprights be shipped knocked down. This may be done for freight savings when shipping overseas. 

Warehouse Rack & Shelf LLC, has been selling pallet rack upright frames with bolted bracing for over five years and have not had any customer complaints. Customers tell us that as long as the pallet rack holds what it is suppose to hold they don't care how the frame is built. Many of the Nations largest manufacturers and distributors are buying uprights with bolted bracing for not only the quality but the cost savings. It's more cost efficient for the factory to bolt rather than weld the bracing on an upright frame. 

Teardrop uprights with bolted bracing come in 15 GA, 14 GA & 12 GA steel columns. They have a high quality powder coat paint finish. One of the biggest advantages is that you can easily unbolt and replace damaged or bent bracing without having to replace the entire upright frame. You must unload the racks before replacing damaged bracing. The footplates can come welded or bolted. The bolted footplates are self leveling and can be provided with a galvanized finish for rust resistance. This high quality, low cost teardrop pallet racking is stocked in Chicago, IL, Newark, DE, Jacksonville, FL, Dallas, TX, San Diego, CA & Gresham, OR.

     

Other pictures of teardrop pallet rack with bolted bracing show that it's engineered to handle heavy loads. 

Versatile Stack Racks Have Many Advantages Over Static Rack

Versatile stacking racks stack 4-5 high and can be easily dissasembled or knocked down when not in use. Rather than dedicate substantial amounts of floor space to permanent rack systems, use portable stack racks to obtain maximum storage density and efficiency.

If your business has seasonal peaks and valleys, stacking racks can be easily disassembled and stored within a very small "footprint", thereby recapturing valuable floor space for other activities.

Portable stack racks can be used as a shipping racks. Advantages include saving on expensive cardboard boxes that can now be eliminated, increasing density in transit (freight savings) and collapsibility.

Stack racks help you greatly reduce costly dunnage. Shipping containers are typically able to be knocked down and returned to the point of origin for reuse.

You're able to customize these "tier rack" style racks to your particular needs. Options include side rails for side containment, fork stirrups, dividers, casters or decking.

Experience the versatility of portable stack racks, pad racks, pallet stacking frames, tire racks, nestable racks, automotive shipping racks, corrugated steel containers and rigid wire containers.  

 

     

See pictures of side-mount pallet stacking frames, nestable stack racks and rigid wire containers stacked three high. 

A Tour Of The EMC Ocala FL Distribution Center

As you take the tour notice that the staging area is to the left in front of the dock doors. The rack rows are to the right and run in the direction of the dock doors easing the product flow. The pallet rack has a bottom beam level that is roughly 10"-12" off the floor. Bottom beam levels are commonly used with order pickers or stand up reach trucks with outriggers that extend off the front of the lift truck. A bottom beam level helps reduce forklift damage to the front leg of the uprights. The forklifts outriggers go under the bottom beam level when picking pallets. It is also important to use a beam that is longer than 96" when using stand up reach trucks with outriggers. Beam lenths of 102"-108" seperate the upright columns further apart which helps reduce damage from outriggers.

Congress Halts Mexican Trucks In The U.S.

Funding bill includes measure killing controversial Bush project
From a an article dated March 11, 2009 by Jerome R. Corsi © 2009 WorldNetDaily

The $410 billion omnibus funding bill headed toward President Obama's desk for signing contains a carefully worded measure that would shut down the Bush administration demonstration project allowing 100 Mexican trucking companies to run their long-haul rigs throughout the U.S. in direct competition with American truckers.

The issue became rancorous over the past two years as Bush administration Secretary of transportation Mary Peters fought off repeated efforts by Congress to confine Mexican trucks to a narrow 20-mile-wide commercial area north of the southern border.

In what appears to be a major victory for Teamster boss James Hoffa, the Obama administration worked closely with Senate Democrats, including Sen. Byron Dorgan of North Dakota to toughen up language of an amendment Dorgan successfully had inserted in the DOT fiscal year 2008 appropriations bill.

Keeping Mexican trucks south of the border appears to be a reward to organized labor for it support of Obama's presidential campaign last year.

The move comes as a blow to free trade advocates in the Republican Party that have pushed hard for new ways to open the Mexican border for increased opportunities between the two countries.