The Inland Empire industrial market continues to break records. A new report from JLL shows the market recorded an impressive 26 million square feet of absorption in 2020 with activity surging at the end of the year.
There is no doubt that e-commerce demand, driven by increased online shopping during the pandemic, drove the market activity, but JLL's Mike McCrary says that the demand drivers are more nuanced that just a general increase in online shopping. "Corporations have had to redesign their network to accommodate the demand from consumers to get products delivered to their homes. We have seen a decade of growth in six months," McCrary tells GlobeSt.com. "All of the sudden how we used to do business isn't the same. There has been a very rapid adjustment to ensure delivery to the consumer. That has driven a lot of the growth."
In addition, brick-and-mortar warehouse support expanded to supply popular essential goods to local stores. Items like toilet paper and non-perishable food products that were flying off the shelves. "You have to remember that many ecommerce companies are selling essential items," says McCrary. "As we have seen a rush on the stock in stores, corporate America has also had to bolster their stock in these buildings to make sure that we don't run out of essential items. People are going to the market more often because they are at home more often, so the distribution channels are changing."
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