The pace of growth of e-commerce sales in the U.S. has slowed since the panic buying of the early Covid years, but its need for industrial space to accommodate fulfilment centers large and small will continue, according to CommercialEdge's October 2023 national industrial report.

"We see e-commerce as a consistent driver of sustainable and normalized demand through the rest of the decade," commented Senior Manager Peter Kolaczynski.

The need for industrial space is magnified by the fact that online sales need three times more warehouse space than traditional retail due to "piece picking, product variety, direct-to-consumer shipping and the need to process returns." Both multi-million SF facilities and smaller in-fill centers for last-mile delivery will be required.