Is Industrial the New Retail?
Panelists at CREW Network and Marketplace Convention in San Diego discuss consumer behavior and buying habit changes and the push it has had on industrial developers.
The world has changed with incredible power at our fingertips. That was according to the three panelists on the Industrial Transformation panel at CREW Network and Marketplace Convention. “Consumer behavior and buying habits have pushed industrial developers to transform warehouses from distribution centers into fulfillment centers.”
Moderated by Barbara Emmons Perrier, of CBRE, panelists talked about how fulfillment centers require different technology, new logistics require rethinking location, and staffing demands push parking needs.
When discussing the concept of “last touch,” ProLogis’ Damon Austin, SVP of capital deployment for the southwest, said that over the next few years, the expectations of the consumer will be completely different. “We are going to get used to a certain level of convenience where you don’t even have to think about where or when your stuff will come,” he said.
The trick, though, is that since the real estate will be much more expensive, the consumer will have to pay something different for a one hour versus one day, added Austin.
With local hubs, smaller scale and multistory industrial, the last mile logistics of distribution are changing the face of development, added KBC Advisors’ Kristina Madayag. Like Austin, Madayag discussed the fact that industrial needs have changed and form and function of space today is pushed by consumer demand.
In certain markets, she said, last touch can be much further out from centralized cities. “Over the last couple of years, last touch facilities have been an experiment to see if it would work from a financial standpoint.”
For the average person, unless there is something very immediate happening, likely thinks that next day delivery is fine, Madayag adds. “But as people get used to it and expect things in the next hour, they will get used to that.”
So, is industrial the new retail? Many, including moderator Emmons Perrier, believe so.
Continue to check back with GlobeSt.com for more from the CREW Network and Marketplace Convention here in San Diego.