With fierce competition for industrial labor, big-box industrial occupiers are looking beyond current economic and talent conditions to consider future workforce needs during site selection.

Building a talent-centric location strategy that balances labor quality and cost can amount to millions of dollars in savings for industrial occupiers, according to an industrial report by CBRE. For example, to achieve $1 million in annual savings, an industrial employer would need to reduce real estate costs by $2.08 per square foot per year. Or, to save the same $1 million, it can redeploy headcount to a market with a slightly lower labor cost. Annual savings of $1 million can be achieved with 500 employees working for $1 less per hour, the report noted.

Big-box industrial facilities are experiencing slower leasing activity, higher vacancies and lower rent growth amid macroeconomic uncertainty and a surge in construction completions. U.S. industrial leasing activity fell 8.8% last year while supply expanded by nearly 1.2 billion square feet, said CBRE.