Ways Supply Chain and Real Estate are Connected

Whether you are a real estate professional, a logistics expert, or simply a general consumer, you should understand that supply chain and real estate are connected in several ways.


This is helpful to know because disruptions in either market might mean disruptions to your bottom line. The professionals in both industries understand all too well that there are ebbs and flows to be respectful of, but that might be less obvious to the untrained eye. Here are a few ways that these industries intertwine.

Real Estate Investing

One of the hottest trends right now is investment properties. As vacation rentals rise in popularity compared to traditional hotels and resorts, investors are scooping up properties left, right and centre to create a passive income stream through the rental market. There are several things to consider before buying a vacation home, and one, in particular, has to do with the supply chain, and that is renovations and improvements.

If you are going to be making changes to a property you buy, you must understand that that might mean an increased timeline for which you can begin to rent it out and make money off of it. Shipping costs can be quite high, and delays are now the rule instead of the exception. If you are willing to move slower, a fixer-upper makes sense, but for potential landlords that don’t have that luxury, purchasing something turnkey would be smarter.

fixer upper

Fleet management companies understand this dilemma and work very hard to create enough transparency with their clients that expectations are reasonably set even when there are delays. Using GPS fleet tracking is the best way to accomplish this. Yes, this gives fleet managers the opportunity to have increased visibility into where their vehicles are, but it can also help reduce fuel costs, optimize routes, and eliminate idle time, which are all things that trickle down to the consumer and can result in delays. Having fleet tracking capability allows the communication between the supply chain and the consumer to thrive.

Remote Locations

It is important to remember that every inch of the globe has real estate to be bought, sold, rented out, etc., and so the need for deliverable goods. If you are thinking about moving or even currently live in an area that is more rural than metropolitan, you should think about what this means for the availability of products that you need daily. The rise of the anti-work movement also might mean delays; if fleet companies do not have workers, they cannot meet their deliverables.

The more remote of a location you live in, the more challenging it is for the supply chain to reach you. Don’t let this deter you from living where you want, just consider it, and understand that 1+ hour drives to the post office, or month-long waits for deliveries, might be your reality. Farming professionals are an excellent example of a sector of individuals that understand this. Since you cannot place a farm in the middle of a bustling city, those who choose to do so realize that the further out they go, the more they might lose the luxury of convenience.