E-commerce Driving Warehouse Leases

According to research by Mountain West Commercial Real Estate, since 2019, the brokerage has leased 25 warehouses, sold three warehouse properties, and there have been 165 total industrial leases. Most of those warehouse leases have been signed by manufacturers, distributors, retailers, and other online sellers or their logistics services providers.

The demand for e-commerce distribution space drove many of the largest I&L leases completed in the U.S. in the first half of this year, “highlighting users’ preference for large, modern facilities”.

When debating it, most people in the business prefer to point out the negative impacts of the e-commerce sector’s rise over the previous several years on the retail property market. The commercial real estate industry should benefit from this development.

The increased number of items exchanged online worldwide necessitates the need to store these commodities before delivery securely. This could push warehouses and comparable CREs into the limelight, positioning them as one of the most attractive commercial real estate industry sectors.