CHICAGO—E-commerce and its likely impacts on the industry was on the minds of many at BMO Capital Markets' 10th Annual North American Real Estate Conference, held Monday and yesterday in Chicago. But the overall mood was one of optimism. As reported in GlobeSt.com, even bricks-and-mortar retailers were upbeat, saying that the ability to buy products online was, besides convenient, another way for consumers and outlet stores to connect. And industrial developers were also buoyant about the possibilities provided by e-commerce.

Speaking at a Monday afternoon session on the future of warehousing and about some of his company's latest projects, Marshall Loeb, president and chief operating officer of EastGroup Properties said “almost every tenant has some component of e-commerce in their space.” And the need for distribution facilities should continue to grow, as companies like Amazon are going to complement their massive distribution centers with smaller fulfillment facilities located closer and closer to urban cores to handle those last few miles of delivery.

E-commerce “is really an add-on to the marketplace,” said James Connor, senior vice president and chief operating officer of Duke Realty, since many retailers now need fulfillment centers. Furthermore, fulfillment centers are unlike traditional warehouses and function more like FedEx or UPSfacilities, with high stacks made up of all different kinds of goods headed out to thousands of individual customers, so satisfying this demand will require a lot of new specialized development.