The Rise of E-commerce and Its Effect on Industrial REITs

warehouseThere’s no doubt that e-commerce is changing the way consumers buy their products. Deloitte even predicts that e-commerce will account for 30% of all U.S. retail sales by 2030. An article recently published by National Real Estate Investors, “E-commerce Lifts Industrial REITs,” sets out to explain why this is having such a profound impact on the industrial real estate sector and its REITs.

What many people don’t think about when it comes to e-commerce is the amount of industrial warehouse space that is needed to fulfill these online orders. According to Prologis, online retailers need at least triple the amount of logistics space as brick-and-mortar retailers. While many retailers offer same day delivery, this means more warehouse distribution centers in closer proximity to shoppers will be needed.

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