Warehouse Site Selection & the EIR - WCL Consulting

When I recently asked a Senior VP Development with an Industrial Real Estate Development firm, what were his first thoughts when I mentioned, “California EIR Process Impact” he quickly responded with three impactful points:

  • Lost Rent Income Opportunity – If a project involved a 1 million square foot warehouse with lease rate of $.32/square foot, for every extra month the EIR process takes, $320,000 is lost in rent income opportunity
  • Missed Market Cycle – If a project is delayed in the EIR process, a specific size building might miss the market peak demand cycle to maximize ROI.
  • Anti-Business Attitude Perception – A potential tenant might perceive a location area is anti-business if the EIR process takes extra time. Today’s tenants would definitely switch their focus to other locations.

In talking with Land Attorneys, Air Quality & Traffic Consultants, and VP Development Executives, the consensus is that the EIR process continues to be a very challenging situation. I suggest that you consider a new, innovative action strategy by using logistics/warehouse operations market information which will make your next EIR more “bullet proof.”

Last May WCL Consulting was asked to assist in answering a developer’s Inland Empire project EIRs opposing attorney’s responses. The push-back statements which we were asked to address included (examples):

1.) Site should have heavy duty tractor electric charging station
2.) Impact if tenant is a refrigerated warehouse company.
3.) Inbound and Outbound GHG footprint.
4.) Project will create serious hazardous cargo situations.
5.) Facility should provide food options, truck fueling and repair services on site.
6.) What types of job could tenant potentially provide?
7.) Limit the truck trip miles from the facility.
8.) Limit the daily number of trucks at the facility.

Of the 15 responses submitted we received only 2 responses back requesting some elaboration. Both were very easy to answer: 1.) Add a summary last sentence, and 2.) Clarify source for labor comment.

If you want to use an innovative method which will make your EIRs more bullet proof, give serious consideration to incorporating logistics and warehouse operations market information. It works.

To discuss this innovative approach to EIRs, please contact me at 310-963-6172 or email: jondecesare@wclconsulting.com