How eCommerce is Boosting Industrial Real Estate Demand

September 6, 2019 | Posted at 2:13 am | by Edwin (Follow User)

Although one of the most recognized and most prominent companies in the world, Amazon alone is not changing expectations and consumer demands. More than Amazon, it’s technology that you should thank for. In today’s modern age, technology continues to advance, whereas humans have no other choice but to adapt to these changes because not doing so will definitely give them a hard time keeping up. For one, the impact of today’s eCommerce industry and other tech trends in retail businesses have completely overhauled the face of industrial real estate markets.

Rents continue to rise over the past years. Frankly, the [industrial] real estate industry isn’t very appealing or eye-catching at all. But today, it seems like the said industry is changing its game. Today, it becomes more attractive and in-demand than in the past. In fact, LS Commercial can attest to that. More and more businesses are leaning on towards renting warehouse spaces and facilities as storage areas, dispensaries, and other spaces solely for the purpose of business!

But, here’s the catch: more than warehouse spaces itself, there’s something more beyond those that help boost the industry’s economy and demand. What else could it be but eCommerce? Ecommerce refers to the process or act of buying and selling products or services online or over the Internet. Nowadays, more and more people prefer online shopping as compared to actual, physical, store-buying because of how convenient it is. More than consumers, many businesses now also opt for the eCommerce industry since this is where they can find most of their target markets. But, relating this to industrial real estate demands, how then can eCommerce help boost or positively impact the said industry? Find out more as you read on the full article below:

The Rise of Different Business Models

Nowadays, several business models in the eCommerce industry continue to rise. With these business models, more and more industrial (and commercial) real estate facilities are needed to fill in gaps and the needs of those businesses in the said industry.

For one, most business models require a company to acquire at least one warehouse facility to house all products, items, and other goods, which are then prepared for customer delivery or shipping. This is mainly how eCommerce affects constant industrial real estate demands. Without the rise and trend of business models, the said industry can pretty much expect lower demand rates or so.

Consumer Consumption

More than anything, consumer consumption has got to be the top motivator or drive for industrial real estate demands. As mentioned, more and more people nowadays prefer online shopping because it saves so much time, energy, and effort. Instead of braving the city traffic and arriving at the mall before it closes, consumers can now order their top picks through the comforts of their own home. Or, they can basically order anytime and anywhere they like for as long as they have a device and an Internet connection to place an order.

Relating to that, since a lot of people now consider online shopping, demands then constantly rise, which, in turn, makes way for companies or businesses to acquire added industrial facilities or spaces to utilize and commence business operations.

Wrapping Up

As technological and eCommerce changes and innovations continuously evolve, businesses in the industrial real estate industry should expect a heightened level of demand for warehouse spaces and other facilities. Today, technology is presumed to advance and propose a new set of innovation to help such industries in both urban and rural areas climb their way to the top.