Big-Box Industrial Demand is Strong, But Shifting

Strasmann: “It’s important to understand that this industry is going through enormous growth and an evolution.”

NEWPORT BEACH, CA—As the economic recovery became much broader based, demand from corporate and private business for light industrial increased, and light industrial is experiencing greater rental appreciation than big-box space, CBRE senior managing director Kurt Strasmann tells GlobeSt.com. According to a recent report from the firm, due to changes in consumer expectations and strong demographics, companies have had to adjust their supply chain accordingly.

The report also states that a huge benefit to the transition to an e-commerce augmented logistics model are the numerous prominent express-shipping hubs throughout the Greater Los Angeles/Orange County/Inland Empire region that move goods purchased on line to the consumers relatively easily. In addition, the impact of e-commerce and last-mile delivery on the region is evident: big-box industrial space, which has been the most in-demand space type during the current cycle, will slowly cede to light-industrial buildings as the need for last-mile facilities increases.