The surging demand for e-commerce sales is not expected to abate anytime soon—and that will force occupiers to look for new development options. 

A new analysis from Cushman & Wakefield predicts that market conditions will remain at historically tight levels, pushing warehouse occupiers and e-commerce tenants to alternative options as premium taking rents rise. Cushman predicts that rent growth for warehouse and logistics space will grow by more than 15% over the next two years; Class A and new construction rents are forecast to jump by even more.

"As consumers become more accustomed to purchasing online, their expectations with regards to delivery service and speed mount," write Cushman's Carolyn Salzer and Jason Price. "Transportation costs account for nearly 65% of total logistics costs, making it the focus of any strategy aiming to reduce supply chain costs. Inefficiencies converge around transportation, especially in dense urban areas. For e-commerce occupiers, reducing the delivery distance to 30 minutes or less is critical."