Industrial real estate, and more importantly, logistics real estate, serves as the conduit everyday consumers have become accustomed to receiving goods and services. Warehouses provide for product storage, truck terminals and distribution centers bring the product one step closer to the consumer while storage yards for trucks, trailers, and containers allow for the aggregation of equipment necessary to match the product to the consumer. The consumer, however, is the catalyst that dictates how each of these components thrives or declines, and ultimately interacts.
The parallels between the last real estate run and this are hard to ignore; the record prices, the bidding wars, warehouses being leased before they’re built, the off-market transactions that …
In 2019, logistics spending accelerated with an 11.4% increase parallel to the e-commerce growth within the United States. In the past decade we have seen industrial rents hit an all-time high, but the demand for more space is growing. The hiccups this nation has faced in its international supply chain logistics validate the necessity for expansion in our nation’s infrastructure.
It seems these days, there are growing numbers of supply chain disruptors. From erratic thunderstorms to tornadoes, hurricanes and droughts; natural disasters still pose the greatest threat to retail disruption. As these uncontrollable events happen, we feel the effects throughout the economy which directly translates to retail.