Built to Order: Customizing Tenant Spaces for Logistics Centers

This year, Insider Intelligence expects U.S. e-commerce sales to hit $1 trillion for the first time. Because of the increase in online spending, there is an increased demand for logistics centers, including warehouses and distribution and fulfillment centers. Logistics facilities are typically completed in two phases. The first phase is the core and shell, which means the outer building envelope is constructed with a very basic interior. A building is more than its shell, though. What makes a logistics center a “center” is its tenants. Tenant build-out is the second phase of construction.

WHAT IS A “TENANT BUILD-OUT”?

Logistics companies need space, often hundreds of thousands of square feet. (One of our design-build clients actually needed 1,000,000 square feet.) A tenant may choose to lease the entire building or a suite within the building. The building or the suite is then “built-out,” or customized, to meet the tenant’s specifications based on its business and operational needs. This type of two-phase project completion is also often referred to as “build-to-suit.” Logistics center build-outs typically include the walls, doors, docks, lighting, and electrical needs. It can also include technology and low voltage systems, security controls, access controls, building automation and temperature controls, and maintenance services.


ANTICIPATING CLIENT NEEDS KEEPS PROJECTS ON SCHEDULE

Different tenants have different needs. One of our clients, a global delivery company, needed conveyor systems to help with packages. They also needed an office area and a separate space for customs services and a canine team. The project, a design-build, took about three months.


Just a few doors down, we worked with a shrink sleeve labeling company that specializes in custom packaging for the craft beverage industry. To ensure their conveyor systems remained powered up, we installed power at the equipment locations and additional panels and transformers to specifically support the conveyor system. Their space also includes docks, loading areas, and storage space. Like the global delivery company space, it was a design-build with a construction schedule of about three months.

“Delivering buildings on time is a big deal,” says Matt Itce, an Account Manager for ERMCO. “We meet the schedule and focus on being there for the general contractor. We anticipate what they’re going to do next and stay ahead of it. We provide anything they need to keep the project moving.”


While each tenant has different needs, ERMCO has the capacity and the skills to meet them all. Plus, if we’ve worked on the shell, we’re already familiar with the building and have a thorough understanding of its structure.


“Their preconstruction, management, and field personnel are knowledgeable, responsive, and flexible,” says Jared Laub, Partner/Project Executive at Compass Commercial Construction Group. “They work well in a collaborative, fast-paced environment.”

 

This post is part of a series of posts focused on logistics projects. Other posts discuss the preconstruction process for building a logistics project. Please follow and share on social media so you don’t miss any posts!


If you’d like to read previous posts:

https://www.ermco.com/post/the-logistics-of-delivering-a-successful-logistics-center

 

For more information on how ERMCO can help with your logistics project, contact:

DREW POJAR | 317.716.7963 | dpojar@ermco.com