Any one that has followed the industrial market for the last fewyears knows that ecommerce has created the heyday of industrialreal estate. The industry has created tremendous demand forindustrial space and has driven vacancy rates to historic lows—sub1% in certain L.A. submarkets—creating a frenzy for more space.Now, ecommerce might be helping to increase the supply.Brick-and-mortar retail closures are beginning to turn intoindustrial downsizing, since fewer fulfillment centers are neededto supply brick-and-mortar locations.
“I represent some large corporations, and they have told me thatbecause online sales are killing their business, they are cuttingback on brick-and-mortar retail locations as well as thedistribution and fulfillment facilities that support thoselocations,” Chris Jackson, an executive managingdirector at NAI Capital, tells GlobeSt.com. “Ithink you are seeing that across the board.”
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