Updates

Latest Entries

This Is the Unexpected Side Effect of Booming Online Sales

While some brick-and-mortar retailers are still struggling to navigate the digital landscape — for other industry players that have a grasp on e-commerce, sales continue to rise. But an unexpected side effect to this digital boom has materialized: a shrinking number of available warehouse spaces and increasingly inundated U.S. distribution centers.
According to a U.S. Industrial & Logistics Figures report conducted by commercial real estate services firm CBRE, the overall industrial availability rate dropped to 7.1 percent in the third quarter — the 33rd consecutive quarterly decline and the lowest since 2000 (the longest span of time since CBRE began tracking data in 1988).
The growth of e-commerce, consumer spending and an overall strong U.S. economy are credited for this unprecedented demand for warehouses and distribution centers, which continues to outpace supply. The result: a logistical nightmare, especially now as retailers continue to ramp up inventory in anticipation of a busy holiday shopping season. Initial data shows that about 63 million square feet of industrial spaces were occupied in the third quarter, and in the past year, demand has exceeded supply by 35 million feet.
“This slight widening of the supply-demand gap of late underscores the industrial sector’s late-cycle strength,” said Richard Barkham, CBRE global

Follow Footwear News on Twitter or become a fan on Facebook.

Read More…

Via:: http://footwearnews.com/2018/business/retail/retail-warehouse-space-online-sales-ecommerce-1202695581/