IDEAS home Printed from https://ideas.repec.org/a/eee/jotrge/v88y2020ics0966692317304908.html
   My bibliography  Save this article

Why do warehouses decentralize more in certain metropolitan areas?

Author

Listed:
  • Kang, Sanggyun

Abstract

Over the last decade, warehousing and distribution centers have decentralized to the urban peripheries where land is cheaper and readily available. This change in location patterns has been driven by the demand to build more modernized and larger facilities to accommodate an ever-increasing influx of freight. Since efficient freight movement is essential for the smooth functioning of metropolitan areas, decentralization should occur everywhere. However, this is not necessarily true. It is hypothesized that depending on the volume of goods movement and the spatial distribution of land prices, the extent of decentralization varies across metropolitan areas. This hypothesis is tested using 48 US metropolitan areas. Results provide robust evidence that high land prices push large warehouses away from central locations. When freight demand and land prices are not as high, the effect becomes insignificant. Indeed, not only is decentralization linked with large metro areas but also with very large warehouses.

Suggested Citation

  • Kang, Sanggyun, 2020. "Why do warehouses decentralize more in certain metropolitan areas?," Journal of Transport Geography, Elsevier, vol. 88(C).
    • Handle: RePEc:eee:jotrge:v:88:y:2020:i:c:s0966692317304908
    DOI: 10.1016/j.jtrangeo.2018.10.005
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0966692317304908
    Download Restriction: no
    File URL: https://libkey.io/10.1016/j.jtrangeo.2018.10.005?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Sakai, Takanori & Kawamura, Kazuya & Hyodo, Tetsuro, 2015. "Locational dynamics of logistics facilities: Evidence from Tokyo," Journal of Transport Geography, Elsevier, vol. 46(C), pages 10-19.
    2. Giuliano, Genevieve & Small, Kenneth A., 1991. "Subcenters in the Los Angeles region," Regional Science and Urban Economics, Elsevier, vol. 21(2), pages 163-182, July.
    3. Theo E. Notteboom * & Jean-Paul Rodrigue, 2005. "Port regionalization: towards a new phase in port development," Maritime Policy & Management, Taylor & Francis Journals, vol. 32(3), pages 297-313, July.
    4. Rodrigue, Jean-Paul, 2008. "The Thruport concept and transmodal rail freight distribution in North America," Journal of Transport Geography, Elsevier, vol. 16(4), pages 233-246.
    5. Alex Anas & Richard Arnott & Kenneth A. Small, 1998. "Urban Spatial Structure," Journal of Economic Literature, American Economic Association, vol. 36(3), pages 1426-1464, September.
    6. Markus Hesse, 2004. "Land For Logistics: Locational Dynamics, Real Estate Markets And Political Regulation Of Regional Distribution Complexes," Tijdschrift voor Economische en Sociale Geografie, Royal Dutch Geographical Society KNAG, vol. 95(2), pages 162-173, April.
    7. Cidell, Julie, 2010. "Concentration and decentralization: The new geography of freight distribution in US metropolitan areas," Journal of Transport Geography, Elsevier, vol. 18(3), pages 363-371.
    8. Erica Wygonik & Alon Bassok & Anne Goodchild & Edward McCormack & Daniel Carlson, 2015. "Smart growth and goods movement: emerging research agendas," Journal of Urbanism: International Research on Placemaking and Urban Sustainability, Taylor & Francis Journals, vol. 8(2), pages 115-132, June.
    9. Allen, J. & Browne, M. & Cherrett, T., 2012. "Investigating relationships between road freight transport, facility location, logistics management and urban form," Journal of Transport Geography, Elsevier, vol. 24(C), pages 45-57.
    10. Giuliano, Genevieve & Kang, Sanggyun, 2018. "Spatial dynamics of the logistics industry: Evidence from California," Journal of Transport Geography, Elsevier, vol. 66(C), pages 248-258.
    11. Laetitia Dablanc & Scott Ogilvie & Anne Goodchild, 2014. "Logistics Sprawl: Differential Warehousing Development Patterns in Los Angeles and Seattle," Post-Print hal-00944130, HAL.
    12. Xavier Gabaix, 1999. "Zipf's Law for Cities: An Explanation," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 114(3), pages 739-767.
    13. Jean‐Paul Rodrigue, 2004. "Freight, Gateways And Mega‐Urban Regions: The Logistical Integration Of The Bostwash Corridor1," Tijdschrift voor Economische en Sociale Geografie, Royal Dutch Geographical Society KNAG, vol. 95(2), pages 147-161, April.
    14. Julie Cidell, 2011. "Distribution Centers among the Rooftops: The Global Logistics Network Meets the Suburban Spatial Imaginary," International Journal of Urban and Regional Research, Wiley Blackwell, vol. 35(4), pages 832-851, July.
    15. Bowen, John T., 2008. "Moving places: the geography of warehousing in the US," Journal of Transport Geography, Elsevier, vol. 16(6), pages 379-387.
    16. Markus Hesse, 2006. "Global Chain, Local Pain: Regional Implications of Global Distribution Networks in the German North Range," Growth and Change, Wiley Blackwell, vol. 37(4), pages 570-596, December.
    17. Jean‐Paul Rodrigue, 2006. "Transportation and the Geographical and Functional Integration of Global Production Networks," Growth and Change, Wiley Blackwell, vol. 37(4), pages 510-525, December.
    18. McDonald, John F., 1989. "Econometric studies of urban population density: A survey," Journal of Urban Economics, Elsevier, vol. 26(3), pages 361-385, November.
    19. van den Heuvel, Frank P. & de Langen, Peter W. & van Donselaar, Karel H. & Fransoo, Jan C., 2013. "Spatial concentration and location dynamics in logistics: the case of a Dutch province," Journal of Transport Geography, Elsevier, vol. 28(C), pages 39-48.
    20. Aljohani, Khalid & Thompson, Russell G., 2016. "Impacts of logistics sprawl on the urban environment and logistics: Taxonomy and review of literature," Journal of Transport Geography, Elsevier, vol. 57(C), pages 255-263.
    21. Dablanc, Laetitia & Ross, Catherine, 2012. "Atlanta: a mega logistics center in the Piedmont Atlantic Megaregion (PAM)," Journal of Transport Geography, Elsevier, vol. 24(C), pages 432-442.
    22. Richard J. Buttimer, Jr. & Ronald C. Rutherford & Ron Witten, 1997. "Industrial Warehouse Rent Determinants in the Dallas/Fort Worth Area," Journal of Real Estate Research, American Real Estate Society, vol. 13(1), pages 47-56.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Wang, Kailai & Chen, Zhenhua & Cheng, Long & Zhu, Pengyu & Shi, Jian & Bian, Zheyong, 2023. "Integrating spatial statistics and machine learning to identify relationships between e-commerce and distribution facilities in Texas, US," Transportation Research Part A: Policy and Practice, Elsevier, vol. 173(C).
    2. Fried, Travis & Verma, Rishi & Goodchild, Anne, 2024. "Ecommerce and environmental justice in metro Seattle," Research in Transportation Economics, Elsevier, vol. 103(C).
    3. Oliveira, Renata Lúcia Magalhães de & Dablanc, Laetitia & Schorung, Matthieu, 2022. "Changes in warehouse spatial patterns and rental prices: Are they related? Exploring the case of US metropolitan areas," Journal of Transport Geography, Elsevier, vol. 104(C).
    4. Nicolas Raimbault, 2022. "Outer-suburban politics and the financialisation of the logistics real estate industry: The emergence of financialised coalitions in the Paris region," Urban Studies, Urban Studies Journal Limited, vol. 59(7), pages 1481-1498, May.
    5. Fried, Travis & Goodchild, Anne, 2023. "E-commerce and logistics sprawl: A spatial exploration of last-mile logistics platforms," Journal of Transport Geography, Elsevier, vol. 112(C).
    6. Aurélie Edouard & Yves Sallez & Virginie Fortineau & Samir Lamouri & Alexandre Berger, 2022. "Automated Storage and Retrieval Systems: An Attractive Solution for an Urban Warehouse’s Sustainable Development," Sustainability, MDPI, vol. 14(15), pages 1-20, August.
    7. Zhao, Liyuan & Zhou, Cong & Liu, Kaili & Huang, Liyang & Li, Zhi-chun, 2024. "Comparison of the driving mechanism between logistics land use and facilities: A case study from Wuhan metropolitan area," Journal of Transport Geography, Elsevier, vol. 114(C).
    8. Trent, Nadia M. & Joubert, Johan W., 2022. "Logistics sprawl and the change in freight transport activity: A comparison of three measurement methodologies," Journal of Transport Geography, Elsevier, vol. 101(C).
    9. Yang, Zhiwei & Chen, Xiaohong & Pan, Ruixu & Yuan, Quan, 2022. "Exploring location factors of logistics facilities from a spatiotemporal perspective: A case study from Shanghai," Journal of Transport Geography, Elsevier, vol. 100(C).
    10. Hu, Wanjie & Dong, Jianjun & Hwang, Bon-Gang & Ren, Rui & Chen, Zhilong, 2022. "Is mass rapid transit applicable for deep integration of freight-passenger transport? A multi-perspective analysis from urban China," Transportation Research Part A: Policy and Practice, Elsevier, vol. 165(C), pages 490-510.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Kang, Sanggyun, 2020. "Warehouse location choice: A case study in Los Angeles, CA," Journal of Transport Geography, Elsevier, vol. 88(C).
    2. Giuliano, Genevieve & Kang, Sanggyun & Yuan, Quan, 2016. "Spatial Dynamics of the Logistics Industry and Implications for Freight Flows," Institute of Transportation Studies, Working Paper Series qt94h6t7s9, Institute of Transportation Studies, UC Davis.
    3. Giuliano, Genevieve & Kang, Sanggyun, 2018. "Spatial dynamics of the logistics industry: Evidence from California," Journal of Transport Geography, Elsevier, vol. 66(C), pages 248-258.
    4. Kang, Sanggyun, 2020. "Relative logistics sprawl: Measuring changes in the relative distribution from warehouses to logistics businesses and the general population," Journal of Transport Geography, Elsevier, vol. 83(C).
    5. Klauenberg, Jens & Elsner, Lucas-Andrés & Knischewski, Christian, 2020. "Dynamics of the spatial distribution of hubs in groupage networks – The case of Berlin," Journal of Transport Geography, Elsevier, vol. 88(C).
    6. Meiling He & Jiaren Shen & Xiaohui Wu & Jianqiang Luo, 2018. "Logistics Space: A Literature Review from the Sustainability Perspective," Sustainability, MDPI, vol. 10(8), pages 1-24, August.
    7. Kang, Sanggyun, 2022. "Exploring the contextual factors behind various phases in logistics sprawl: The case of Seoul Metropolitan Area, South Korea," Journal of Transport Geography, Elsevier, vol. 105(C).
    8. Oliveira, Leise Kelli de & Lopes, Gabriela Pereira & Oliveira, Renata Lúcia Magalhães de & Bracarense, Lílian dos Santos Fontes Pereira & Pitombo, Cira Souza, 2022. "An investigation of contributing factors for warehouse location and the relationship between local attributes and explanatory variables of Warehouse Freight Trip Generation Model," Transportation Research Part A: Policy and Practice, Elsevier, vol. 162(C), pages 206-219.
    9. Aljohani, Khalid & Thompson, Russell G., 2016. "Impacts of logistics sprawl on the urban environment and logistics: Taxonomy and review of literature," Journal of Transport Geography, Elsevier, vol. 57(C), pages 255-263.
    10. Yang, Zhiwei & Chen, Xiaohong & Pan, Ruixu & Yuan, Quan, 2022. "Exploring location factors of logistics facilities from a spatiotemporal perspective: A case study from Shanghai," Journal of Transport Geography, Elsevier, vol. 100(C).
    11. Yuan, Quan & Zhu, Jiren, 2019. "Logistics sprawl in Chinese metropolises: Evidence from Wuhan," Journal of Transport Geography, Elsevier, vol. 74(C), pages 242-252.
    12. David Guerrero & Jean Paul Hubert & Martin Koning & Nicolas Roelandt, 2022. "On the Spatial Scope of Warehouse Activity: An Exploratory Study in France," Post-Print hal-03551270, HAL.
    13. Li, Guoqi & Sun, Wenjie & Yuan, Quan & Liu, Sijing, 2020. "Planning versus the market: Logistics establishments and logistics parks in Chongqing, China," Journal of Transport Geography, Elsevier, vol. 82(C).
    14. Sakai, Takanori & Kawamura, Kazuya & Hyodo, Tetsuro, 2015. "Locational dynamics of logistics facilities: Evidence from Tokyo," Journal of Transport Geography, Elsevier, vol. 46(C), pages 10-19.
    15. Guerrero, D. & Hubert, J.-P. & Koning, M. & Roelandt, N., 2022. "On the spatial scope of warehouse activity: An exploratory study in France," Journal of Transport Geography, Elsevier, vol. 99(C).
    16. Adeline Heitz, 2017. "Logistics sprawl in monocentric and polycentric metropolitan areas: the cases of Paris, France, and the Randstad, the Netherlands," REGION, European Regional Science Association, vol. 4, pages 93-107.
    17. Guerin, Leonardo & Vieira, José Geraldo Vidal & de Oliveira, Renata Lúcia Magalhães & de Oliveira, Leise Kelli & de Miranda Vieira, Henrique Ewbank & Dablanc, Laetitia, 2021. "The geography of warehouses in the São Paulo Metropolitan Region and contributing factors to this spatial distribution," Journal of Transport Geography, Elsevier, vol. 91(C).
    18. Sakai, Takanori & Kawamura, Kazuya & Hyodo, Tetsuro, 2017. "Spatial reorganization of urban logistics system and its impacts: Case of Tokyo," Journal of Transport Geography, Elsevier, vol. 60(C), pages 110-118.
    19. Oliveira, Renata Lúcia Magalhães de & Dablanc, Laetitia & Schorung, Matthieu, 2022. "Changes in warehouse spatial patterns and rental prices: Are they related? Exploring the case of US metropolitan areas," Journal of Transport Geography, Elsevier, vol. 104(C).
    20. Meiling He & Lei Zeng & Xiaohui Wu & Jianqiang Luo, 2019. "The Spatial and Temporal Evolution of Logistics Enterprises in the Yangtze River Delta," Sustainability, MDPI, vol. 11(19), pages 1-20, September.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:jotrge:v:88:y:2020:i:c:s0966692317304908. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: https://www.journals.elsevier.com/journal-of-transport-geography .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.