‘Logistics Have Become Sexy Again'

ORANGE COUNTY, CA—The drive to deliver retail product to the consumer ever-faster—sometimes called the “Amazon effect,” is causing many e-commerce retailers to work toward facilitating direct supplier-to-consumer transactions. This trend is increasing the demand for industrial real estate that brings these goods closer to the consumer, and it’s creating some logistical challenges as the need for industrial fulfillment space increases. GlobeSt.com spoke with Mike Nelsen, chief development officer of online merchandising and fulfillment platform CommerceHub in Albany, NY, and Jim Linn, SVP investments for Illinoi-based Centerpoint Properties’ Southern California presence. In Part 1 here, we discuss this demand and the impact it’s having on commercial real estate. Stay tuned to GlobeSt.com for Part 2, in which we discuss some of the logistical challenges this trend brings up and how the market is meeting the demand.

GlobeSt.com: What are the implications of suppliers investing in industrial real estate to remain competitive in the “Amazon effect” arena?