Ecommerce gets all the credit, but it might not be solely responsible for the industrial boom this cycle, according to experts at RealShare Southern California. On the Industrial Outlook panel—moderated by Jenny Redlin, a principal at Partner Engineering and Science with speakers Brandon Birtcher, CEO of Birtcher Development LLC; Ryan Grove, director of real estate development at Ryan Companies US; and Tim O'Rourke, managing director at JLL—said that changes to the supply chain, which requires that goods be closer to the consumer, is largely responsible for the industrial activity this cycle.
Birtcher said that these changes to the supply chain include changes in the trucking industry and the shortage of drivers, the need for new bridging in railroads and ports that can accommodate mega ships. While he says that ecommerce is one driver, he says that these changes to the supply chain have created a need for goods to be closer to consumers today. This means, for example, that a market like Phoenix can't service Southern California anymore. “We have a need to put goods close to people,” he said on the panel. “It is the supply chain that really drove this activity.”
While Birtcher says that the supply chain has been largely responsible for the industrial activity, O'Rourke says that ecommerce demand is strong and has shifted the industrial market to be more population focused. Additionally, there is still strong manufacturing demand in Southern California. “Even though manufacturing has been on its way out for 25 years, we still have more than any other MSA in the country,” he said.
Recommended For You
Want to continue reading?
Become a Free ALM Digital Reader.
Once you are an ALM Digital Member, you’ll receive:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
*May exclude premium content© 2025 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.