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They could just be leasing out space in locations where they overbought relative to short term needs, but expect to need the capacity later. E.g. project out st
by curiousllama 4y ago
They could just be leasing out space in locations where they overbought relative to short term needs, but expect to need the capacity later. E.g. project out steady 10% YoY volume growth with a 5-year real estate cycle for warehouse space, and you'd def get some medium-term regional overcapacity/shortfalls.
- charwalker 4y agoEX a small brewery building a 20+ barrel setup as that is the predicted need in 3-5 years then leasing or partnering use of half their facility while building their brand and distribution network. Then when ready they have the capacity to 'expand' without the costs of said expansion. For startups/new breweries it can be a double edged sword leading to high initial debt or overhead costs but with the right leadership/strategy/product it definitely pays out over time.