RETAIL is reinventing itself while INDUSTRIAL is flourishing!
After attending NAIOP’s webinar, The Transformation of Retail and its Direct Influence on Industrial’s Boom featuring Andrea Himmel with Himmel + Meringoff Properties and Jeffrey Rinkov, SIOR, with Lee & Associates, it is clear the commercial real estate landscape is evolving and changing to adhere to the current state of demands in the industry. More specifically, the demand for industrial space is booming due to the accelerated growth rate of E-commerce. As a direct result of COVID-19, E-commerce grew the same amount in 90-days that it did in the last decade. Therefore, the industrial sector of commercial real estate has taken a front seat and thriving in high demand.
Logistically, the moving parts and consumer driven demands of E-commerce have been transforming the conventional idea of retail and industrial. Industrial was largely known for longer term storage of goods and bulk item storage while now the new last-mile phenomenon is changing and shaping the product type. Last-mile industrial spaces don’t require the same specs for example, the turn around time to store goods is much shorter and may require less square footage, lower ceilings and more opportunity for automation. Retail was known for brick-and-mortar shops targeted specifically to the end consumer while now these products types are prospects for micro-fulfillment center locations. The primary markets for last-mile sites are generally near dense urban markets due to consumer demands and; where the supply has been diminishing over the last several years. Therefore, the transition from retail to last-mile industrial sites is only natural after the past several years harboring the fact that retail is dying.
Watching the retail and industrial sectors of commercial real estate change and transform before our eyes is fascinating. Change is inevitable especially in drama-charged environments; looking forward to what comes next!
For the webinar visit NAIOP