Source: Real Estate Business Online
While the commercial real estate industry has experienced many uncertainties during the pandemic, the industrial and logistics market continues to thrive. With the rapid acceleration of e-commerce in the wake of COVID-19, major online retailers are picking up large warehousing and manufacturing spaces to keep up with the surge in demand, which is ultimately responsible for industrial real estate experiencing vacancies at historic lows in 2020.
The trend of moving operations online is likely to continue at a faster pace after the pandemic subsides. Major retail companies have taken notice and are starting to capitalize on available real estate, converting square footage in malls to last-mile delivery centers and buying up spaces in logistics parks.
To accommodate the increase in tenant demand, the industrial real estate market has already started to adapt. However, with all of the additional leases that have occurred in the short-term, is there still opportunity for this sector to grow?
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