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CBRE Group report: Shortage of truck drivers poses a risk to existing distribution chain strategies and elevates the importance of real estate in supply chain structures

Markets with Intermodal Infrastructure Positioned for Industrial Space Growth

​Los Angeles, 2014-11-24 — /EPR Retail News/ — The U.S. industrial real estate market expansion has been driven, in part, by the ongoing evolution of supply chains, as businesses seek to distribute goods across the country ever more quickly and efficiently. However, a nationwide shortage of truck drivers poses a risk to existing distribution chain strategies and elevates the importance of real estate in supply chain structures, according to a new report by CBRE Group, Inc.

While trucking plays a large role in the distribution of goods across a supply chain, the higher costs stemming from a shortage of truck drivers is spurring users to find other options for transport over land. Rail is an obvious and very cost-effective choice. Demand for warehouse and distribution space in markets that feature a significant intermodal component has been a strong indicator that users are choosing access to the rail network as a solution to some portion of their long-haul transportation needs.

CBRE projects that distribution markets with significant intermodal facilities—the Inland Empire, Indianapolis, Baltimore, Dallas/Ft. Worth, Orlando, New Jersey Central, Portland, San Antonio, Virginia Northern and Houston—will grow their inventory of industrial space most quickly over the next 12 months. Much of the new construction in these markets is on or near intermodal pathways, largely to take advantage of the link that rail lines provide to ports and major distribution hubs.

“Rising transportation costs, particularly those associated with trucking, are forcing supply chain users—manufacturers, importers, and exporters—to devise blends of warehouses and distribution centers that will most efficiently service the need for port access while enabling quick delivery to end users in densely populated metropolitan areas,” said Scott Marshall, Executive Managing Director, Industrial Services, The Americas, CBRE.


About CBRE Group, Inc.
CBRE Group, Inc. (NYSE:CBG), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services and investment firm (in terms of 2013 revenue).  The Company has approximately 44,000 employees (excluding affiliates), and serves real estate owners, investors and occupiers through approximately 350 offices (excluding affiliates) worldwide. CBRE offers strategic advice and execution for property sales and leasing; corporate services; property, facilities and project management; mortgage banking; appraisal and valuation; development services; investment management; and research and consulting. Please visit our website at

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