Industrial investors are looking to big box retail for warehouse supply. According to a new report from CBRE, nearly 14 million square feet of big box retail space in the country has been converted to industrial space. This trend is supporting growing demand for industrial space as ecommerce shopping increases.

"Reduced demand for malls and big box retail combined with a shift in consumer buying patterns have greatly increased demand for industrial and logistic space.  As a result, retail investors are evaluating the highest and best uses for their properties, which lines up with the escalation of industrial demand," Matt Siegel, retail leader for the Pacific Southwest region at CBRE, tells GlobeSt.com. Kurt Strasmann, industrial leader for the Pacific Southwest at CBRE, agreed, adding, "The result is that many investors are putting money into potentially repositioning different types of retail assets that could align with industrial uses."

Big box stores are the best candidates for retail-to-industrial conversion projects. "The best candidates for potential conversions are underperforming big box retail and lagging malls with proximity to neighborhoods to serve last-mile delivery demand," says Siegel.