Holiday shopping season is upon us, some people are shopping in stores and some online. Josh Hearne, SIOR provided some insight into the commercial real estate effect on shopping and shipping.
In 2001, a gallon of gas was $1.46, Wikipedia launched online, and Apple released the first ever iPod. This was also the last time Chicago has seen one of its lowest vacancy rates in the industrial market. In the second quarter of 2018, the vacancy rate was at 6.44%.
By now, as the commercial real estate community knows well, Amazon and the likes have sought after large Class A warehouse space as the e-commerce demand continues to grow. We live in the time of larger spaces and shorter delivery times. The perfect solution to address this challenge is found in last-mile distribution facilities. This article from Bisnow.com addresses the hidden value in these 30,000 to 65,000 SF facilities often overlooked by major corporations, but are now seeing the limelight as sought after property along major transportation ways. Click here to read the full article at Bisnow.com.
The Chicago industrial real estate market is shows no signs of slowing down, and attracting investors from other sectors. In this article from Crain's Chicago, the ongoing e-commerce boom plays a large role in the recent success of the industrial real estate market. The article takes a look at financial statistics to support the reasoning behind the industrial sectors' success, while the other sectors sink to an under performing status. Read the full article at ChicagoBusiness.com
With the rise in online shopping and demand for faster delivery times, there is a need and change in big box industrial development. The Chicago area saw a 13.76% increase in development in response to the booming e-commerce industry. Can vacancy rates keep up with the extra warehouse and distribution centers and how is e-commerce impacting some firms' distribution infastructure? Read more in this article from GlobeSt.com