By John Dettleff, Senior Managing Director, Brokerage, JLL for AreaDevelopment.com
The United States will need one billion square feet of industrial space over the next five years to keep up with e-commerce demand — one billion! Throughout the COVID-19 pandemic, much attention has been paid to the future of office, but the industrial market is experiencing a similar tectonic shift.
Prior to the onset of the coronavirus, the increase in online sales was driving growth in the industrial real estate sector. JLL found that nearly 35 percent of all industrial leasing was attributed to e-commerce pre-pandemic. After March 2020, as online sales experienced an explosion in growth, demand for distribution space skyrocketed, accounting for the majority of all industrial leasing in 2020 — Amazon alone represented 55 percent of total U.S. industrial absorption.
Click here to read more details about:
- Industrial Real Estate Stealing Some Moves from the Office Sector
- Scale and Proximity: Increasingly at Odds
- Investor Demand Mirrors Occupier Demand
- Occupiers Inflexible on Flexibility
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