Warehouse employment is one of the few bright spots in the job market. The sector is now employing more people than before the start of COVID, with employment up 3.8% or 46,000 positions, since mid-March, according to the Bureau of Labor Statistics.

When choosing an infill location for a warehouse, investors need to keep this tight labor market in mind. "A proper labor analysis digs into employee drive-times, extent of existing warehouse jobs, turnover, number of eligible workers, unemployment and wage rate trends. It's also vital to consider labor availability for peak season," writes Cushman & Wakefield's Benjamin Conwell.

Solving for the labor issue is particularly crucial for e-commerce operations, which is taking an increasingly significant share of the industrial sector. "E-commerce orders are fulfilled differently than wholesale or traditional store replenishment. Rather than being palletized, orders are shipped as 'eaches,' which are received, stowed, picked and shipped individually. This process requires a greater number of associates than comparable legacy warehouses," Conwell writes.