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NEWPORT BEACH, CA—As the economic recovery became much broader based, demand from corporate and private business for light industrial increased, and light industrial is experiencing greater rental appreciation than big-box space, CBRE senior managing director Kurt Strasmann tells GlobeSt.com. According to a recent report from the firm, due to changes in consumer expectations and strong demographics, companies have had to adjust their supply chain accordingly.

The report also states that a huge benefit to the transition to an e-commerce augmented logistics model are the numerous prominent express-shipping hubs throughout the Greater Los Angeles/Orange County/Inland Empire region that move goods purchased on line to the consumers relatively easily. In addition, the impact of e-commerce and last-mile delivery on the region is evident: big-box industrial space, which has been the most in-demand space type during the current cycle, will slowly cede to light-industrial buildings as the need for last-mile facilities increases.

We spoke with Strasmann about the shift to light-industrial and other industrial shifts he foresees for the Orange County market as e-commerce continues to grow.