Welcome back to The New Warehouse Podcast. In this episode, Kevin chats with Blake Chroman, Principal at Sitex Group. They discuss how warehouse power infrastructure is reshaping industrial real estate decisions. Drawing from Sitex Group’s portfolio across New Jersey, New York, and South Florida, Chroman explains how electrical capacity, utility timelines, and total occupancy costs now influence leasing and development strategy.
The conversation explores why power has moved from a background consideration to a front-line requirement, how older buildings are being repositioned, and what tenants should evaluate when selecting their next facility.
Warehouse Power Infrastructure Moves to the Center of Decisions
As warehouse operations become more automated, warehouse power infrastructure requirements have shifted dramatically. Chroman makes it clear that electrical service is no longer a minor checkbox during site selection. “Electrical service has become one of the key leasing variables,” he explains, emphasizing that utilities now sit near the top of tenant priority lists.
This shift is especially pronounced in larger distribution and fulfillment centers where automation, climate control, and EV charging demand higher capacity. According to Chroman, “I see the standard going to like two to three thousand amps,” with some users requiring even more.
These expectations are influencing how developers design new facilities and how landlords evaluate existing assets. Buildings with sufficient power are often leased first, even when tenants do not immediately need the capacity. The result is a clear flight to quality, where infrastructure readiness accelerates absorption and reduces downtime in competitive markets.
Retrofitting Older Buildings Takes Time
While new facilities are being designed with higher power in mind, many tenants still rely on older warehouses, especially in dense markets like North Jersey. Retrofitting those buildings presents real challenges. Chroman notes that upgrading utilities is rarely quick, explaining that “retrofitting an older building that doesn’t have some of this infrastructure is very expensive and it takes a long time.” In many cases, the delay is not financial but procedural. “It could be six, nine, twelve months before you get the approvals from the utility,” he says.
This timeline affects leasing strategy, negotiations, and lease length. Tenants willing to invest in upgrades often seek longer terms to amortize costs. For landlords, power discussions now happen earlier in diligence, moving up the checklist as a differentiator in crowded submarkets.
Total Occupancy Cost Shapes Leasing Strategy
Beyond power alone, tenants are taking a broader view of what it truly costs to operate a facility. Rising taxes, insurance, and maintenance expenses have made total occupancy cost a central concern. Chroman observes that tenants increasingly look past headline rent, often responding with, “That’s great—what does that mean for me monthly?” This shift reflects a more sophisticated tenant base focused on long-term operating stability.
Modern or recently renovated buildings offer an advantage because newer roofs, HVAC systems, and electrical infrastructure break down less often. As Chroman puts it, “It’s no longer just about what is your rent.” Instead, reliability, predictability, and infrastructure readiness define value. In a normalized market, these factors often outweigh minor differences in base rent.
Key Takeaways on Warehouse Power Infrastructure
- Electrical capacity is now a primary driver of warehouse site selection.
- New facilities are being designed with significantly higher power standards.
- Retrofitting older buildings can take 6–12 months due to utility approvals.
- Buildings with stronger warehouse power infrastructure lease faster, not necessarily higher
- Tenants increasingly evaluate total occupancy cost, not just base rent.
