The COVID-19 pandemic has impacted every aspect of our lives, including how we shop. e-commerce sales increased by 43% during the first year of the pandemic. Online shopping is still thriving in 2023. This e-commerce boost has greatly impacted the commercial real estate industry as the need for warehouses has seen steady growth.
Due to services like Amazon and the frequency at which people are purchasing online, expectations for quick delivery are high. Similarly, transportation costs account for a large percentage of the total logistics costs. Cutting back on transportation costs will help save the consumer and company money. The most efficient way to reduce these costs is to have more warehouses. Thus, the demand for warehouses was born.
E-commerce tenants have been highly active in constructing new development sites. The new warehouses are being built to be bigger than before. They’ve also been willing to pay higher rent for warehouses in key locations. The best warehouse locations are near major urban cities, such as Atlanta and Cincinnati.
E-commerce is expected to continue its rise in demand. The growing demand is sure to lead to more warehouses nationwide. If you’re looking for a warehouse property, check out our industrial properties available!