An Alternative Determinant of Warehouse Space Demand: A Case Study

Asieh Mansour and Marvin Christensen

Journal of Real Estate Research, 2001, vol. 21, issue 1-2, 77-88

Abstract: This article is the winner of the Best Research Paper Presented by a Practicing Real Estate Professional manuscript prize (sponsored by the American Real Estate Society Foundation) presented at the 2000 American Real Estate Society Annual Meeting.A unique approach is used to assess the demand for warehouse space. Typically, demand for warehouse space has been modeled using population or employment measures. Unlike previous work, warehouse inventory, rather than employment, is used to model space demand. Warehouse inventory is proxied by data on freight shipments. Detailed information on the location and freight activity of manufacturing plants and distribution centers across the United States, Dallas, Los Angeles, and Seattle is used. Warehouse employment is then compared to freight shipments in determining demand for warehouse space. Preliminary results are mixed and the sample size of the metro areas examined should be increased in future work.

Date: 2001
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DOI: 10.1080/10835547.2001.12091043

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