If the explosive growth of e-commerce continues as expected beyond 2024, it is likely to increase demand for logistics space from 24% now to 30% by 2030, and cross-border retailers like Shein and Temu will be a significant cause.
A new analysis by Prologis of the impact of the e-commerce boom on logistics real estate found that in 2024, online retail accounted for 56% of the total goods sales growth in the U.S. That translates to 8% a year, compared to 1.8% for in-store sales.
Retailers have adjusted their real estate strategies to accommodate this trend and enhance their warehousing and distribution facilities. Occupied U.S. logistics space has increased 12%, while occupied retail space (excluding services) has diminished by 2.4%. “E-commerce still requires three times the logistics space of in-store sales in 2024,” the report noted. “This share shift alone would produce 250 to 350 million square feet of U.S. logistics space demand over the next five years.”
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