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Holiday Sales and Marijuana Light Up Warehouse Sector

SAN FRANCISCO—Two evolving trends that are impacting the warehouse segment have been e-commerce, which continues to drive the space needs for online retail goods, and a growing marijuana industry, which is increasing demand for warehouse properties in selected markets.

By Lisa Brown | lisabrown | Updated on March 07, 2017

Amazon.com Amazon continues to dominate in the online marketplace.

SAN FRANCISCO—In each of the major commercial real estate property type sectors, secular trends continue to influence demand and shape performance. Two evolving trends that are impacting the warehouse segment have been e-commerce, which continues to drive the space needs associated with the movement and storage of online retail goods, and a growing marijuana industry, which is increasing demand for both old and new warehouse properties in select markets, according to Kroll Bond Rating Agency Inc.

With the emphasis on logistics and proximity to customers, retailers are now more often utilizing fulfillment centers or revamping existing distribution centers to accommodate e-commerce growth. This supply chain reconfiguration plays into the instant gratification that e-commerce shoppers want: shortening the time between the click on the computer and the knock on the door for the delivered goods, GlobeSt.com learns.

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