Industrial Space is Booming
While many commercial real estate markets are struggling, the industrial market is booming. Learn why – and how you can take advantage of this lucrative investment opportunity!
The 2020 novel coronavirus pandemic pulled the emergency brake on the fast-moving commercial real estate market. With social distancing measures and lockdown restrictions causing many retail, dining, and office buildings to go vacant, owners and landlords found themselves facing an unexpected financial future.
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However, the sudden change in consumer behavior had an unexpected upside – online shopping. Where do all of those products ship from? Industrial eCommerce warehouses.
The Rise Of eCommerce & Industrial Logistics
As customers were forced to move their buying online, the world of eCommerce has seen a sharp rise in popularity. In 2020 alone, consumers spent a record $861 billion shopping with eCommerce merchants online – up 44.0% year over year.
With all that online buying, companies are looking for new ways to source and store their products for order fulfillment.
What was once seen as only a necessity for niche industries, warehousing is a crucial aspect of eCommerce merchant logistics. Many business owners outsource their warehousing to third-party logistics providers (3PLs), managing sourcing products and shipping to customers.
From product providers such as Amazon to local online grocery stores, online shopping leads many businesses to seek lucrative warehouse space – a unique opportunity for investors looking to cash in on the uncertainty of a post-pandemic economy.
Is eCommerce Warehousing: The Future Of Commercial Real Estate?
Is logistics warehousing for eCommerce businesses the future of commercial real estate? The COVID-19 pandemic has caused an upheaval in nearly every industry, and the rise of eCommerce shopping has threatened to change consumer behavior forever.
As more businesses move operations online, it will become increasingly necessary for commercial warehouses to maintain stock for shipping and logistics.
This boom in eCommerce logistics needs has helped prop up the industrial real estate market in unexpected ways. In fact, some analysts believe that eCommerce businesses will require up to 1 billion square feet more in industrial warehouse space by 2025. With so much need, the value of industrial real estate space is bound to skyrocket.
With the expected rise of eCommerce, now is a lucrative time to consider investing in the industrial market. With the help of a trusted real estate advisor, you can discover how to get in on the front end of this unique opportunity.
Hi! We’re Josh and Jolene Baijot, the creators of this website. We’re also Commercial Real Estate Agents in Washington State. Thank you for taking the time to read this blog post. We appreciate your time spent on this site. You can connect with us on Facebook, Instagram, or contact us through this website.
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Questions to Ask When Touring a Warehouse
f your business involves shipping products, you will need a warehouse.
Whether you opt for a third-party logistics company or rent your own space,
each property will have its unique infrastructure.
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