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E-Commerce Speeds Industrial Real Estate Transformation

The North American industrial real estate sector is undergoing a rapid transformation driven by e-commerce growth, and is forecast to grow by double digits throughout 2019 and beyond, according to the global real estate firm Cushman & Wakefield.

Over the next few years, several broad trends will influence the market, the company observes. One of these is warehouses that will get taller and be brimming with state-of-the-art technology. “Tenants will begin to test and fill multi-story warehouses, with the industry learning a tremendous amount about their functional abilities and the rent premium tenants that occupy them are willing to pay,” C&W says.

The company forecasts North American industrial real estate absorption will register a healthy 495 million square feet (msf) in 2019-2020, with 550 msf of new product delivered by year-end 2020. In the U.S., net absorption will eclipse 245 msf in 2019 with demand expected to track in the low-to-mid 200 msf range in 2020.


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The information above has been obtained from sources deemed reliable. While we do not doubt its accuracy, we have not verified it and make no guarantee, warranty or representation about it. It is your responsibility to independently confirm its accuracy and completeness. Any projections, opinions, assumptions or estimates used are for illustration only and do not represent the current or future performance of the property.