Warehouse and logistics site selection: what matters most

Warehouses and logistics facilities are fundamentally about movement — goods arriving, being stored and handled, and leaving again. A site that makes movement easy keeps operating costs down for years. A site that makes it hard — congested access roads, awkward plot shape, flooding — adds cost every single day. Choosing the right land is one of the most important decisions in a logistics project.

Types of logistics facilities

• Regional distribution centres — serving a wide area, often near highways
• Last-mile or urban fulfilment — close to customers in the city
• Port-linked warehouses — near seaports for import/export
• Cold storage — temperature-controlled, with high power needs. See solar for warehouses and cold storage.
• Manufacturing-linked warehouses — near factories they serve

Each has different location priorities.

Key factors

1. Location and travel time

Measure travel time, not just distance, to:

• Main customer areas
• Ports, airports and rail terminals
• Highways and ring roads
• Supplier sites

Check at peak times. A site a few kilometres closer but behind a congested junction may be slower.

2. Road access

• Frontage onto a road wide enough for heavy trucks
• Junctions that trucks can turn into easily
• No height or weight restrictions on the approach
• Restrictions on truck movement during certain hours in urban areas

See road access for industrial land.

3. Plot size and shape

Warehouses need space beyond the building:

• Truck yard and manoeuvring
• Loading docks
• Parking for trucks and staff vehicles
• Internal roads and fire access
• Setbacks required by building rules
• Expansion space

Regular, rectangular plots with good frontage work best. Irregular shapes waste space.

4. Levels and flooding

Stored goods are vulnerable to water. Check:

• Site level relative to surrounding roads and land
• Flood history in the area
• Drainage capacity
• Proximity to water bodies and channels

Raising a site adds cost but may be essential. See environmental checks on industrial land.

5. Ground conditions

Warehouse floors carry heavy racking and forklift traffic. Soil conditions affect floor slab and foundation design and cost.

6. Zoning and approvals

• Is warehousing a permitted use?
• What building rules apply — coverage, height, setbacks?
• Is conversion needed? See agricultural to industrial land conversion.
• Fire safety requirements for storage

7. Utilities

• Power — automation, lighting, cold storage and EV charging need reliable supply
• Water — for fire systems, staff and operations
• Telecom — for warehouse management systems

See power and water availability.

8. Workforce

Warehouses employ many people, often on shifts. Access by public transport and proximity to residential areas matter.

9. Neighbours

Truck traffic, noise and night operations can cause objections from residential neighbours. Sites among compatible uses avoid conflict.

Build, buy or lease

• Buy land and build — full control; capital-intensive
• Lease land and build — less capital; need long-term lease security. See long-term industrial land leases.
• Lease a built warehouse — fastest; less control
• Built-to-suit — developer builds to your spec and leases to you. See built-to-suit vs buying land.

Location vs price

Cheaper land further out may cost more in transport over the life of the facility. Compare total cost, including transport. See location vs price for logistics land.

A site screening sequence

1. Define the network role — which customers and routes the site serves
2. Map travel times to identify a search area
3. Screen zoning and flood risk
4. Visit shortlisted sites at peak times
5. Check records and title. See industrial land due diligence checklist.
6. Test layouts on each site
7. Compare on total cost and operational fit

Security and operations at night

Many logistics operations run around the clock. Night-time security, lighting on approach roads, safe parking for waiting trucks and staff transport for late shifts all affect whether a site works in practice. A site that seems ideal on a weekday afternoon may feel very different at two in the morning, so visit at night too.

Common mistakes

• Choosing on land price without modelling transport cost
• Plots too small for truck movement
• Ignoring flood history
• Assuming warehousing is permitted without checking zoning
• Underestimating power needs for future automation

Thinking about future operations

Warehouse operations change quickly. Automation, higher racking, electric vehicles and new service models all change what a site needs. When choosing land, allow for a taller building if rules permit, extra power capacity, space for charging infrastructure, and room to add docks. Land that leaves no room to adapt can shorten a facility's useful life.

How we help

Through warehousing and logistics land and industrial land services, we help logistics companies and developers identify sites, compare options and coordinate due diligence.