Is industrial real estate the future for investors following the COVID-19 pandemic?
Recently, with COVID-19 ongoing, many retailers and manufacturers have been embracing more e-commerce — and so have more Canadian shoppers.
Retail Insider reported that some retailers, such as online furniture retailer Wayfair, increased profits during COVID-19 as more customers turned to online shopping.
Even post-pandemic, many Canadians intend to continue shopping online. According to CTV News, an April 15 survey commissioned by Dalhousie’s Agri-Food Analytics Lab found that 22% of Canadians intend to buy food online post-COVID-19. A year ago, CTV News reported, barely 4% of Canadians were even considering buying food online.
However, as e-commerce escalates, that could mean a shift towards industrial real estate.
A CBRE Research study found that in the U.S., for each incremental $1 billion growth in e-commerce sales, an additional 1.25 million sq. ft. of distribution space was needed to support this growth.
If e-commerce grows in Canada, it will need the space to do so.
On the GeoWarehouse blog, we are sharing more commercial real estate trends to watch, plus ways that your property data tools can help act on these trends. Read it here: https://www2.geowarehouse.ca/commercial-real-estate-investing/