Impacts of E-commerce
The impacts of e-commerce are widespread. Brick-and-mortar retailers are shutting their doors, businesses are keeping less inventory on hand, and the commercial real estate industry is shifting dramatically.
With vendors abandoning their in-person locations, developers are reimagining retail spaces into co-working locations, housing, and offices. Additionally, the rise of e-commerce has increased pressure on the industrial real estate sector.
Industrial Real Estate Revitalization
A booming e-commerce market is revitalizing industrial real estate. Online retail giants like Amazon allow customers to do all of their shopping from home. As this type of trade continues to be the most preferred, the commercial real estate industry is shifting to accommodate the change.
The demand for warehouse space is skyrocketing. Businesses are repurposing old manufacturing facilities into industrial space to facilitate online shopping. Furthermore, distribution facilities and warehouses are being constructed in hubs nationwide to provide faster shipping times for local consumers.
Along with space used to store and distribute merchandise, a significant infrastructure is required to support a rapidly evolving e-commerce landscape. Companies are desperate for data centers to manage online traffic.
Facilities and vacant land that can accommodate industrial real estate are now some of the hottest commodities in commercial property. As e-commerce continues its growth, the demand for industrial real estate will follow suit.
Should You Invest?
If you are looking to expand your portfolio, now might be the time to invest in industrial real estate. There is no sign of slowing down, and with artificial intelligence gaining momentum, we will see a continued reliance on e-commerce and online transactions.
Your commercial real estate broker will help you decide whether an industrial real estate investment is the right next step for you. Please contact Steve Longenecker at WeBrokerCORealEstate or 720-600-9513 regarding any commercial real estate needs in Longmont, CO, and our neighboring communities.
We give out $250 gift cards for referrals that become our real estate clients.
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