The U.S. Industrial Market has recovered remarkably since the last recession especially in the coastal markets that are historically constrained for well-located Class A industrial product. As a result, industrial users have regained confidence in the U.S. economy and have begun to quickly expand their operations.
In many top-tier U.S. markets, absorption rates are on the rise, vacancy rates are compressing and capitalization rates are nearing pre-recession levels. A key driver of this absorption is the continued influence that e-commerce is having on the national and global Business-to-Consumer ("B2C") marketplace. Global online retail sales grew by 14.8% per year from 2007 to 2012 with an estimated total of $1.2 trillion in 2013. Retailers and third party logistics companies are desperatly seeking to capitilize on this trend by securing strategically located distribution facilities in high-density population centers in key markets.
In many cases retailers are adjusting their traditional brick-and-morter store strategies and focusing on online channels to improve delivery times, develop efficient return and exchange procedures and increase market penetration. Success in the retail industry rests on inventory management and quick delivery times, as a result demand for well equipped and strategically located facilities is skyrocketing.
A growing trend towards three key property types is emerging across the U.S. and internationally:
- Mega e-fulfillment centers;
- Parcel hubs and delivery centers;
- Urban Logistics Centers
Please contact Sherpa Commercial Real Estate if you would like to discuss these emerging CRE trends, if you are a retailer in need of distribution facilities or traditional retail space, or are an investor looking to capitalize on the anticipated strong demand for well-located distribution facilities.
www.creSherpa.com | 303.949,6443
In many top-tier U.S. markets, absorption rates are on the rise, vacancy rates are compressing and capitalization rates are nearing pre-recession levels. A key driver of this absorption is the continued influence that e-commerce is having on the national and global Business-to-Consumer ("B2C") marketplace. Global online retail sales grew by 14.8% per year from 2007 to 2012 with an estimated total of $1.2 trillion in 2013. Retailers and third party logistics companies are desperatly seeking to capitilize on this trend by securing strategically located distribution facilities in high-density population centers in key markets.
In many cases retailers are adjusting their traditional brick-and-morter store strategies and focusing on online channels to improve delivery times, develop efficient return and exchange procedures and increase market penetration. Success in the retail industry rests on inventory management and quick delivery times, as a result demand for well equipped and strategically located facilities is skyrocketing.
A growing trend towards three key property types is emerging across the U.S. and internationally:
- Mega e-fulfillment centers;
- Parcel hubs and delivery centers;
- Urban Logistics Centers
Please contact Sherpa Commercial Real Estate if you would like to discuss these emerging CRE trends, if you are a retailer in need of distribution facilities or traditional retail space, or are an investor looking to capitalize on the anticipated strong demand for well-located distribution facilities.
www.creSherpa.com | 303.949,6443
RSS Feed