b'4American Journal ofTransportation ajot.com(DIMENSIONScontinuedchairman of global real estate from page 2) brokerageJLL(JonesLangIn expansion quest, East Coast Warehouse base or cloud storage systemLaSalle)andheadofits ofyourchoice.Moreover,Northeastern (U.S) Industrial& Distribution opts for new facility customersdonotneedaRegion, told AJOT we spend squadron of information tech- more time counselling (ware- outside NYNJ port districtnologyspecialiststoinstallhouse) occupants and ownersBalancingcosts,convenienceandcongestion,thetemperature-controlled Cargo Spectre software, saidon how the property will fit theco-founderofthecom- atenantsoperationalandlogistics provider opened a new warehouse in Dayton, N.J.pany,Thesoftwarecanbelogistical needs.integratedwithanyback- By Peter Buxbaum, AJOTendorcloud-hostedappli-cation in less than an hour,Thedemandfortemperature-controlledEastCoastscustomersaresomeofthe said Joachim. And it is splitstorage has increased steadily in recent years.preeminentnamesinthebeer,wine,spir-second fast, he added.EachIts a trend that is expected to continuebutits,candy,andconfectionerysectors.The pallet dimensioner, is capablenew capacity in the sector, especially near thecompanyisthenortheasterndistributorfor ofdimensioning,weighingcontainer facilities of the Port of New York andHeineken, for example, as well as for Haribo, and photographing any palletNew Jersey, has fallen short of the growth inthe makers of Gummy Bears. Weve got an in a couple of seconds. market demand. entire building dedicated to their needs, said But those capabilities areEastCoastWarehouse&Distribution,aDaly, speaking of Haribo. more logistical than pure ana- temperature-controlled logistics provider head- With its customers growing and its desire lytical. Our process automa- quarteredinElizabeth,N.J.,aimedtoboosttoexpanditscustomerbase,EastCoast tionfeatureletsthesystemsupply in the New York-New Jersey area withneededtoaddcapacity.WiththeDayton use AI to collect and analyzetherecentopeningofa388,000square-footfacility well pick up over 20,000 pallet posi-thedataandmakeeducatedwarehouse south of the port in Dayton, N.J. Easttions, said Daly. The new building will give calls.ThisworksespeciallyCoast operates facilities in Elizabeth and Bay- us significant upside having the total capacity wellforaircargowhichRobert C. Kossar, vice chairman ofonne, in the NYNJ region, as well as in Penn- of about 43,000 pallet positions. East Coast isfourtimesmoreexpen- global real estate brokerage JLL sylvania, Maryland, and Georgia. The off-porthas now shut down the building on Pulaski St., sivetotransportcargothanAs he puts it, rather thanlocation of the new facility represents somethingwhich held around 16,000 pallet positions.movingitbyseawhenyoujust signing warehouse leasesof a departure for East Coast. Cost considerations proved factor in fuel, crew and otherfor industrial property owner- Thecompany,whosecus- paramount in East Coasts deci-expenses. clients, I focus as a player- tomersareconcentratedinthesionaboutwheretoexpand. CargoSpectresDimen- coachoncreativeoutcomesbeverage and confectionary sec- Inthelastthreeorfouror sioning has a huge advantagefor others.Clients who aretors, knew that decision time wasfive years, property values and over manual freight handling,successfulinmakingstrate- upon it when its lease on a ware- lease rates around the port have saidthesoftwareexecutive.gic real estate are well posi- house on Pulaski St. in Bayonne,accelerated to a level where its Because it is costly and cat- tioned for broader success. N.J.,wasabouttoexpire.Thealmost impossible to run a busi-astrophic to overload an air- Kossarwasanearlycompany wanted and needed toness, said Daly. Given the rent plane and disrupt the weightenthusiastandexpertintheexpand in the New York metro- increases and the need to sup-andloadbalance,wedoabenefitsofmulti-storyware- politanregion,andindecidingKevin Daly, East Coasts CCO port our growing business, we freight loading simulation onhouses and distribution centerswhere to locate a new facility, the availability offelt that we needed to explore other options. the groundstudy and modelin markets where space is at aspace, or lack thereof, near the port and the rela- LowerleaseratesinSouthBrunswick itbeforeactuallyloadingpricey premium and trade andtive costs of operating near-port, or at somewhatimprovesthecompanyscostprofileand the cargo onto the aircraft. transportationisahigh-vol- of a distance, proved critical. The Dayton facil- expandsitscapacity,whilealsoprovid-ume,high-density,year-roundity, a new building located in South Brunswickinggreatermaneuverabilityforthetrucks W arehouses pace : g oing business.ThefirstexamplesTownship, around 30 miles south of the compa- cominginandoutofthewarehouse.The v ertical ofmulti-levelwarehousesnys Elizabeth headquarters, won out. crowded streets and roads nearer to the port are Fordecades,warehousesappeared in Asia 20-plus yearssometimes difficult to navigate. anddistributioncenterswereago. The worlds largest Sane xpansionm odesituated in suburbs and off free- Francisco-based logistics realWhenitcomestofoodandbeverage,s pace in thep ort : n ice toh ave orn eedwaysandexpresswayswhereestateinvestmenttrustandthere always seems to be a shortage of tem- toh ave owners could get lots of landowner,Prologis,pioneeredperature-controlledwarehousespaceinandTrucks often struggle getting in and out andunencumberedaccesstothat specific marketspace witharound the port proximity, said Kevin Daly,of the port, said Daly. As costs continue to thoroughfares,wherecom- verticalpropertiesinindus- EastCoastschiefcommercialofficer.Weincrease in and around the port area, we, as a muter traffic was minimal, andtrial land- scarce Far East andhavent had any space to sell for the better partsolutions provider, needed to test the market automobileand18-wheelerdevelopedthefirstverticalof 18 months near the port facilities in Newto decide whether a building at the port is a snarls did not disrupt scheduleswarehouse in the U.S. in SanJersey. Our customers are back to their pre- nice to have or a need to have. Unless youre and fray driver nerves.(DIMENSIONScontinuedCOVIDoperations,butwedidnthaveanybringing in containers that are overweight, you But urbanization, shrink- on page 5) room for additional organic growth. (FACILITYcontinued on page 5)inglandparcels,theinsa-tiabledemandforswift, no-excuses cargo delivery to the front porch and not just a loading dock, where a shrink-ing scarcity of big rig drivers and the recent trend to accept runs and routes close to their home rather than bunking in at truck stops or sleeping in theircabs,haschangedthe face of trucking and of indus-trialrealestate,specifically warehousing and DCs.Now, stir in not just com-puterizationbutadvanced digital technology such as AI or machine learning and the basicwarehouseifthere is such a thing anymoreis immediatelytransformed into a 24/7 AI laboratory.Theburninglogistical questionbecomeswheredo yousituatethesestructures, sotheygeneratemaximum productivity, profits and min-imum waste and do not swal-lowupprimecommercial and industrial real estate?RobertC.Kossar,vice'