Search
 

The Real Impact of Two-Hour Deliveries on Industrial Real Estate

ORLANDO—According to the US Commerce Department, domestic e-commerce sales have grown an average of 15% year-over-year since 2010.

By Jennifer LeClaire | jenniferleclaire | | Updated on July 27, 2016
The industrial market in Central Florida continues to show robust activity in leasing and sales. The industrial market in Central Florida continues to show robust activity in leasing and sales.
ORLANDO—There’s no lack of discussion about how e-commerce is impacting industrial real estate . Although some believe its impact is greater than others, all agree that the impact is undeniable. GlobeSt.com caught up with industrial real estate specialist John B. Jackson to discuss the e-commerce issue and get his thoughts on where Central Florida’s industrial market is headed in part two of this exclusive interview. You can still read part one: Two Emerging Hotspots in Central Florida Industrial . GlobeSt.com: How are changes in consumer trends, such as e-commerce, affecting the industrial market? Jackson: E-commerce is evolving and consumers prefer the convenience of same-day and two-hour delivery services. The effects are evident not only through new development of large fulfilment centers along major transportation corridors, but also through increased demand for 30,000- to 100,000-square-foot facilities that are close to the urban core and can support last-mile and two-hour delivery. Supply chains continue to decentralize as more products are purchased on mobile devices. According to the US Commerce Department, domestic e-commerce sales have grown an average of 15% year-over-year since 2010. We expect that to continue to increase as e-commerce players move into direct competition, and sometimes collaboration, with grocers and drug stores through last-mile delivery. GlobeSt.com: Where do you think the industrial market is headed?  Jackson: Fundamentals support a strong finish for 2016 with some uncertainty headed into 2017. Our economy has benefited from 76 straight months of slow and steady recovery. By comparison, the average length of an economic cycle since World War II is 58 months. With credit beginning to tighten, upward pressure building on interest rates, and diminishing global economic growth prospects, there is possibility of a slowdown in the industrial market in the coming 18 to 24 months. However, because of strong local and regional growth, we don’t expect the Central Florida market to retreat as far or as fast as other primary industrial markets across the country. Central Florida CRE remains strong with Multifamily, Retail and Industrial leading the way. Are You In The Know? How can you profit? Join us at RealShare Central Florida on September 7th for impactful information from the leaders in Central Florida CRE.Learn more.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

NOT FOR REPRINT

© 2024 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.

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2024 ALM Global, LLC. All Rights Reserved.