E-Commerce Growth to Spur Warehouse Leasing Momentum, Forecasts Augusto Beato

March 13, 2019
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Portland SEO's Augusto Beato expects the warehouse leasing momentum to continue from e-commerce firms despite viewpoints that the sector’s warehouse use have reached a plateau.

He was reacting to a CBRE report that e-commerce and logistics companies claimed a larger share of the 100 largest industrial-and-logistics leases signed in 2018 than they did a year earlier.

"Warehouses are either the last place where goods are stored before they reach consumers or just one stop in the delivery network, " noted Bato, who is the CEO of Portland SEO. "They are indispensable in e-commerce and will continue to attract high demand as long as there is a strong e-commerce growth."

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CBRE’s analysis of last year’s industrial-leasing activity in the U.S. found that 61 of the largest 100 leases were signed by e-commerce companies and logistics firms for a total of 61.5 million square feet. In the previous year, those two sectors claimed 52 of the largest leases for a cumulative 43.2 million square feet.

The two are related in that many logistics companies, such as third-party logistics providers, handle e-commerce distribution for their clients.

Forty percent of the 3PL occupiers were serving e-commerce customers, which shows that online retail continues to impact demand for logistics space.

Regardless of industry, the largest industrial leases got even larger last year. The largest 100 from last year – spanning uses such as e-commerce, logistics, manufacturing, food and beverage, technology and retailing – totaled 19 percent more space than the largest of 2017.



SOURCE: Press Advantage [Link]

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