Brick-And-Mortar Retail Is Affecting Industrial Too

Greg Leisch

CHICAGO–We all know the story about industrial’s phenomenal performance in recent years: it is being fueled by e-commerce and the related consumer demands for speedy delivery. This is certainly true, but there is more to the story than that.

Retail — yes, brick-and-mortar retail — is also underpinning industrial’s growth, according to a forthcoming report by Newmark Knight Frank. While that may seem counter intuitive at first, Greg Leisch, author of the report and senior managing director of Market Research for Newmark Knight Frank, has a simple explanation: As retailers rightsize and downsize they are relying ever more on just-in-time delivery from — you guessed it — last mile industrial facilities that can deliver product to the stores within a day’s time or less.