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You are here: Home / Commentary / E-commerce industrial space is a silver lining amid retail downsizing
E-commerce industrial space is a silver lining amid retail downsizing

E-commerce industrial space is a silver lining amid retail downsizing

September 2, 2016 By RhinoSupport Leave a Comment

No one can deny the explosive growth of online shopping and as more retailers move online the demand for warehouse and fulfillment centers increases also. This can be a boom for real estate investors as retailers look for space. Even as traditional retailers close up stores, there’s a silver lining as those retail spaces can become purposed for other investments.

Key Takeaways:

  • Industrial spaces are also gravitating closer to cities to help e-commerce retailers meet rising consumer expectations for faster delivery times and cut down on transportation costs.
  • The exit of a big anchor store could certainly kill a mall on its last legs, triggering contract clauses that let other tenants out of their leases and launching a vacancy death spiral.
  • Department stores tend to pay less in rent because they are supposed to be traffic-driving anchors. By getting out of those leases, mall landlords can find other uses for the space, such as movie theaters or restaurants.

“”Store closings are on the rise, but adapting to consumers’ online shopping habits translates into more warehouse space and fulfillment centers.””

https://www.internetretailer.com/2016/08/19/e-commerce-industrial-space-silver-lining-stores-close

Related posts:

  1. Ecommerce Growth Leading to Tighter Distribution Center Availability
  2. Luxury commerce is the next frontier for retailers
  3. Back to bricks and mortar: how e-commerce has embraced the real world
  4. 3 Top tips to increase engagement with your e-commerce store – Ecommerce Platforms

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