What’s Trending in CRE?
Keeping up with the latest CRE trends can be daunting while trying to run your own business. We've put together a short list of topics trending in the commercial real estate world to keep you current.
Continued Growth in E-commerce:
In 2018, according to the US Commerce Department, E-commerce sales totaled approximately $517B and accounted for over 14% of all retail sales in the United States.
E-commerce sales have grown at an average of 15% annually over the last 3 years and each $1B of increased sales volume has been equated to approximately 1.25MSF of additional warehouse demand.
If current trends continue, growth in E-commerce is projected to drive demand for an additional 100MSF of industrial space in 2019 alone.
With online sales still making up less than 15% of all retail sales nationwide, plenty of runway remains for prolonged growth as consumer spending habits continue to shift towards E-commerce platforms.
The Retail Apocalypse
The growth of e-commerce, as discussed above, has driven many retailers to bankruptcy, either trimming locations or closing altogether.
Despite some retailer growth, and some e-tailers making the jump to brick and mortar stores, some dark retail space needs to be reinvented.
Numerous enclosed malls have already been targeted for total redevelopment and conversion to Industrial (See the Schuylkill Mall).
Next up are likely to be smaller scale opportunities that might target the last mile needs of e-commerce suppliers or flex space users.
Opportunity Zones were established as part of the Federal Tax Cuts and Job Acts of 2017 as a way to drive community reinvestment to specific rural and urban communities throughout the nation.
The Opportunity Zone program is a way to defer, reduce or eliminate realized and future federal capital gains.
For more information about Opportunity Zones read our full article here.