Skip to main content

How Will E-Commerce Continue to Impact CRE in 2020?


In today’s world, nearly every major industry is being impacted by e-commerce. One way or another, the online shopping revolution has instigated change for businesses.

When it comes to the commercial real estate arena, e-commerce plays a crucial role in shaping the rules of the game. Whether it’s by influencing tenant demands, sparking new trends, or restructuring the physical shape of properties; no one can deny that e-commerce is now apart of commercial real estate.

Resultantly, e-commerce’s influence on CRE is set to remain strong into 2020 and beyond.

Let’s take a look at two of the biggest commercial sectors that are feeling the e-commerce heat this new year:

Retail Takes On a Global Perspective

Brick-and-mortar retail isn’t what it used to be. Online shopping and e-commerce are restructuring the entire physical retail module - and this is undoubtedly impacting the commercial real estate biz.

After surviving the so-called ‘retail apocalypse’ of 2019, physical shopping has transformed into something innovative, creative, and high in demand. CRE’s retail space requirements are changing since brands are adapting to the new era of shopping.

Let’s face it: shopping can be done anywhere when the Internet is involved. The best way to outdo the convenience and speed of online shopping is by offering consumers something they truly can’t deny - experience.

Retail brands do not necessarily need to have thousands of locations around the country anymore. Contrarily, most retailers are choosing to create amazing spaces in hot cities around the world.

For contemporary consumers, quality beats quantity. As shopping becomes more experiential and less about necessity; brands are cultivating exclusivity, legacy, and uniqueness.

Having a few fantastic and diverse retail spaces in popular markets is boosting business in big metros all over the world. Retail brands are striving to expand globally rather than on a town-by-town basis. It’s more strategic to set up grounds in bustling affluent global cities are brands strive to stay afloat in today’s globalized world.

Industrial

As e-commerce continues to expand its reach, there is an increasing demand being placed on warehouses and distribution centers. As shipping deadlines get shorter and available products continue to diversify, who do you think carries the direct load? It’s certainly not the Amazon’s of the world.

Instead, it’s CRE that takes on the responsibility and makes all of the e-commerce promises possible.

2020’s warehouse demand is expected to be through the roof as last-mile logistics become increasingly more intense. There need to be more distribution centers spread out around the globe to streamline the delivery process.

The shapes of warehouses are also changing. Pick-up and delivery demands are increasing and industrial spaces need more parking lots and loading zones. These already-massive centers need to get bigger, better, and more organized.

Technology and AI will play a big role in optimizing the contemporary warehouse scene.

CRE Pros: Prepare For What’s To Come

All in all, it’s obvious that CRE is being impacted by the ever-growing popularity of e-commerce. This digital marketplace is making waves in the commercial business, so make sure that you and your business are prepared to ride it out.

Comments

Post a Comment

Popular posts from this blog

4 Senior Housing Trends That Will Continue to Change the Space in 2020

Senior housing developments have been a popular conversation within the commercial real estate business. As the life expectancy of seniors keeps getting older and older, the growing elderly population faced a serious housing crisis in 2019. The 80+ population skyrocketed before CRE could keep up. And when it finally did, there was a lot of work to do. In order to accommodate today’s aging population, senior housing developments were a serious need. Even though investor demand started off slow, the sudden boom motivated commercial real estate developers and investors to take action and begin making moves. With more CRE pros jumping on the senior housing market opportunities, the competition went from 0 to 100 in no time. As a result, an amenity-war has broken out - but it’s unlike anything you’ve ever seen before. Let’s look at these 4 senior housing trends that are redesigning the senior housing module in 2020 and beyond: In-House Medical Services Seniors ...
Post a Comment
Read more

NAI Emory Hill Sells Wilmington Shopping Center

  Wilmington, DE – NAI Emory Hill ( www.naiemoryhill.com ) is pleased to announce the sale of a 8,710 square foot shopping center located at 2308 Concord Pike in Wilmington, DE to The Wittig Family at DSM Commercial. Dave Morrison and Jim O’Hara Jr., of NAI Emory Hill, represented the purchaser and Seller in this transaction. This retail center is anchored by Mattress Firm, Green Drop and China Inn. The center is strategically located at the intersection of Sharpley Road and offers a great retail location along the busy Route 202 corridor. NAI Emory Hill is a completely full-service commercial and residential real estate firm serving Delaware and the surrounding counties of Maryland, New Jersey and Pennsylvania. Founded in 1981, we have the resources to design, build, finance, lease, sell, manage and maintain commercial and residential properties throughout the Mid-Atlantic . Learn more about our services at: www.propertymanagementdelaware.com www.emoryhillhomes.com
Post a Comment
Read more

Protecting NOI in the Senior Living Space

When observing the latest trends in senior living, don’t jump to any conclusions - make sure you’ve got the whole picture first. CRE’s senior living sector is facing low occupancy rates - but that doesn’t mean the industry isn’t standing strong. When it comes to NOI, occupancy isn’t everything. While a property’s occupancy rates can act as the main contributor to net operating income, there are other elements that help fuel profits for commercial real estate investors . So what’s going on in the senior living spaces that are sparking turbulence for commercial real estate? Here’s a breakdown: Construction is Booming For the last few years, senior living spaces have been undergoing a surge of construction. Unfortunately, this elongated period of growth has taken a major hit on occupancy rates. In the five years between 2014 and 2019, national occupancy rates for senior living facilities have dropped 2.5% . As reported by the National Investment Center for Senior H...
Post a Comment
Read more