Central IA Industrial Warehouse & Commercial Flex Space
The demand for industrial and commercial flex space has skyrocketed over the last decade which has primarily been driven by e-commerce, supply chain challenges, a push for reshoring production closer to target markets and a strong housing market.
According to the US Census Bureau, from 2012 to 2017,e-commerce sales grew 14.4 percent annually, up from 11 percent from the 5 years prior. Furthermore, e-commerce deliveries tripled between 2013 and 2018.
E-commerce was rapidly expanding before COVID-19 but the pandemic drove even more consumers to shop online. E-commerce now makes up nearly one-fifth of all retail sales and is expected to see double-digit annual growth through at least 2025.
To put it simply, more storage space is needed. Prior to 2020,distributors and manufacturers rarely ordered products or materials beyond their short-term needs. That works fine when goods are moving, but disruptions caused by the COVID-19 pandemic highlighted the vulnerability of global supply chains.
Businesses are now looking to enhance their supply chain resilience by securing additional inventory storage and diversifying their distribution networks. This has led to increased demand for industrial spaces, both for storage and distribution purposes and has caused a push of reshoring production closer to target markets.
Flex warehouse space is the other industrial type of warehousing that has become increasingly popular in recent years. As the name implies, flex space is a flexible industrial product that may easily accommodate a wide range of uses. These warehouses usually have at least some portion of office, retail or showroom space connected to the warehouse and can widely range in size to fit the needs of your small handyman contractor, to crossfit gyms, to regional distributors.
Regardless of your business and need for industrial space, we’re seeing a vastly different economic landscape than we did just a few years ago and securing well-located industrial real estate is critical to remaining competitive in today’s marketplace.
Tell me more about what you need in commercial space and I’ll keep you up-to-date with properties that fit your needs as well as market trends.
For reasons listed above the industrial sector continues to be a dynamic and resilient player in commercial real estate. Industrial real estate has seen substantial growth and transformation over the past few years, with record low vacancy rates and record high absorption rates driving prices up.
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