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Case Study Murphy Warehouses operates nine warehouses in the Minneapolis-St. Paul region. When Murphy Warehouses requires another facility because of customer expansion or changes in warehouse and distribution demand, the following are key requirements for purchasing another existing facility: Facility must have access to Interstate or major highway interchanges (within 3 miles). Facility must have on-site access to rail (reflecting Murphy's market strategy). Facility must be between 150,000 and 200,000 square feet. Real estate taxes in community must be reasonable. Preference toward energy-efficient facilities. Facility must be in good structural condition including docks, steel joists, roof, and floors. Stormwater can be handled on-site. Other considerations are: 1) the new site should have access to the markets served and located within the metropolitan area; 2) land prices and development costs to refurbish the existing facility would also factor into location decisions; and 3) any facilities considered would have to be sound real estate investments and sellable in the future. Time to market and overall logistics Network modeling and analysis costs are prime factors driving freight facility location decisions. Time to market and overall logistics costs are prime factors driving freight facility location decisions. As a result, the first stage for locating a freight facility is to examine the interplay between location and freight costs. Transportation is a large consideration at this point in the analysis. Companies use computerized network modeling programs or equivalent methodology to estimate total shipping cost and time to market for a range of scenarios. These approaches use customer or store locations, sourcing points, freight loads, fuel costs, facility operating costs, and transportation modal choices to develop 34 Freight Facility Location Selection: A Guide for Public Officials