Online transactions will make up ten per cent of all American retail sales by 2017, one expert has predicted.
Adam Mullen, who is CBRE Group’s head of supply chain services, expects the figure to grow quickly from its current point of 6.2 per cent, with the country’s commercial property market benefiting from the surge.
In its latest report, the real estate firm claims that developers in the Greater Los Angeles Area are struggling to keep up with growing demand from e-retailers searching for new warehouses to house their stock.
Mr Mullen was quoted by cio-today.com as saying: “To keep up with growing demand, e-commerce companies and, increasingly, traditional retailers are making major investments in big-box facilities that function both as warehouses to store goods and distribution centres to fulfil online orders.”
According to newsfactor.com, work is currently underway on 34 industrial properties in the Riverside and San Bernardino counties alone. The facilities, which cover a total of 16 million square feet, account for 14 per cent of all ongoing industrial projects in the US.
Most of the buildings under construction are designed specifically for e-retail order processing, with 29 set to be at least 100,000 square feet. A further two projects in Fontana are also in the early planning stages and will offer an extra 350,000 square feet of space.
Author: Graeme Parton