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Warehousing sq ft under management
What it is
The scale metric for contract logistics - total warehouse space operated for customers, whether owned, leased or managed. Grade-A space with automation commands a premium over conventional sheds
Investor appetite has been strong, with large platforms raising capital to develop grade-A capacity
Impact on industries
- Space under management is sticky - once a customer's inventory and processes sit in a facility, switching is disruptive and rare
- Grade-A and automated facilities earn better rentals and attract the multinational customers who specify compliance and productivity standards
- Square footage measures scale rather than profitability, since managed space on thin fees differs entirely from owned space earning rent
- Quick commerce is shifting demand toward small distributed nodes, so total square footage understates the change in network shape