We can all agree that regardless of what industry you work in, COVID19 has impacted the your business in one way or another. While sadly many have been impacted negatively it has created opportunity for others. The boom in online purchases has changed retail forever and created a unique investment opportunity in the warehouse sector of real estate.
During the coronavirus pandemic, it has been reported that consumers are buying essentials online more than ever — forcing producers of staple goods to scramble for additional warehouse capacity and companies to rethink supply chains. The way we consume products has changed drastically. Online sales increased by 40% between May 26 and June 1, when compared with the period between February 24 and March 1, according to leading online retailers. This shift in consumerism has increased both short- and long-term demand for the industrial real estate properties.
By being creating home bases for companies to provide to the consumers from, sales have the potential to double as it allows for a speedier process between consumer and retailer. U.S. industrial leasing during the first quarter of 2020 was recorded at a three-year high – and that’s only accounting for the beginning of the pandemic. E-commerce as a percentage of overall industrial leasing is increasing too. Last year this sector represented 11.8% while preliminary data for 2020 shows that figure nearly doubling at 20.8%, according to research by JLL. “This is not just COVID. Industrial real estate has been the best performing core real estate type in the last decade, driven particularly by shifting consumer behavior toward the convenience of ecommerce,” said Zane Carmean, a Pitch Book analyst.
It is crucial that you as the investor stay up to date on the shift toward e-commerce and the way it impacts the real estate market. Our team of advisors is available to assist you in securing financing for your business and real estate growth and operating needs. We are excited to continue growing with you and take pride in being the premiere marketplace for business lending. To learn more about how we can help your business grow visit our homepage today : https://bizlendingpartners.com/