Bisnow article previews a session at CRE.Converge Virtual 2020, October 7-8
August 17, 2020
Industrial real estate has looked unbeatable over the last few months, and the coronavirus pandemic has prompted a slew of predictions about the future of e-commerce: that consumers won’t go back to brick-and-mortar, or that retailers will start using warehouses to stockpile supplies for another crisis, boosting industrial demand higher than we’ve ever seen.
How much truth is there in these predictions, and how much is just wishful thinking for the industrial market? Bisnow sat down with JLL Executive Vice President Matthew R. Powers, who studies the big picture of American e-commerce distribution, to gauge his expectations for the e-commerce market. Powers will speak on an e-commerce panel at NAIOP’s CRE.Converge Virtual, Oct 7-8, 2020.
The article reads, in part:
Will consumers make the switch to e-commerce forever?
The pandemic has pushed more Americans than ever to try out online shopping. But will those consumers go right back into stores when they get the chance, or does the pandemic mean a long-term shift toward e-commerce — and a surge in demand for warehouse space?
Powers expects that while some consumers may never get used to doing their shopping online for daily needs like groceries, the majority are going to permanently expand e-commerce's role in their daily lives. The slow but unstoppable shift to e-commerce that retailers and distributors foresaw years ago has only accelerated, and warehouse leasing is not likely to stagnate after the pandemic.
“When you’re talking about essential businesses, you’ve almost seen a doubling in their industrial demand,” Powers said. “That is expediting how quickly they want to get into markets around the country. Instead of a 10- to 15-year industrial growth plan, it’s now a five-year growth plan.”
Read the full article on Bisnow.