Perry C Pursell

Gainesville, Florida Commercial and Industrial Real Estate

PERRY PURSELL, REALTOR

(352) 665-9731
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3 Ways the Industrial Market is Being Impacted by Retail

December 18, 2018 by Perry Leave a Comment

Retail trends have had a huge impact on the industrial market for the last few years. Amazon shifted the entire e-commerce industry to lightning-fast shipping, which means that industrial centers and warehouses are being moved to closer-to-the-city locations to handle the load.

On top of that, the trend toward reduced store size means that there’s more need for off-site storage and warehousing for retail products than ever before. Here are 3 other ways that the industrial market is being impacted by retail.

#1: Massive Closures of Big Retailers

Everything that you could buy at places like Sears, Kohl’s, and JC Penney can be ordered online at Amazon for less and with front door delivery. Because of that, retail giants are seeing massive closures. This year alone, Sears is closing 150 of its stores, JC Penney is planning to close 140 stores, and Macy’s is closing 100 stores but they’re not the only ones.

Brick-and-mortar retail overall is preparing for massive closures due to bankruptcy over the next year, largely because of Amazon, but also other online retailers. These closures are both haunting and inspiring for the industrial market. Those holding leases for big box stores are preparing for huge hits. Those investing in these shuttering retail stores have big new innovative ideas for how to reuse these spaces.

#2: Rethinking of Industrial Space Use

The vacancy rate for industrial space hit a low point last year with a basis point drop of 70 points to 5.6%; lower than the record low hit in 2000. Those vacancies may not last long as industrial leaseholders and investors seek to find new uses for spaces now housed by failing retail giants.

Again, e-commerce is the driver behind this trend sweeping through the industrial market; the rethinking of industrial space use. Some old shuttered storefronts make excellent fulfillment and distribution centers that are located closer to city centers. They are now being converted to handle last-minute-mile issues for new online retailers to aid in faster on-time delivery.

#3: Global Consumption Increases due to E-Commerce

U.S. retailers aren’t the only ones feeling the effects of retail on the industrial market. E-commerce has also increased global consumption and is expected to account for at least 30% of the global economy over the next several years. Products once cost prohibitive for people living in the Far East are now as easy to order online as they are in the U.S.

That has helped to expand the global reach of online retailers beyond U.S. borders. With that, the need for more physical space to house all of the goods needed to accommodate the growing global demand for faster delivery has made once abandoned industrial spaces more attractive.

Some of the top players in the global market demanding more supply from U.S. online retailers are China, Brazil, and Mexico. Expect the reach of global goods from online retailers in the U.S. to expand to other parts of the world, thus further increasing the appetite for more industrial space.

 

Written by Nicole Brzyski for Coldwell Banker Commercial Affiliates

Filed Under: Commercial Real Estate, Industrial Real Estate, News, Statistical Blurb, Uncategorized Tagged With: #educational/vocational, #gainesville commercial real estate, #manufacturing jobs, art #retail sales., Gainesville Manufacturing, Industrial and Technology, industrial real estate

From CBC: Warehouses go Vertical

June 15, 2017 by Perry Leave a Comment

Check out this great article going over why today’s business world is changing the view on warehousing set up for growing businesses!

http://www.cbcworldwide.com/blog/warehousesgovertical5reasonsthismakessense

Filed Under: Uncategorized Tagged With: #bigbuildings, #commercial properties, #new industrial space in gainesville, Industrial and Technology

Watch this building being built week 2

November 20, 2015 by Perry Leave a Comment

This 7500 square foot warehouse is continuing to move make progress.  You can see my blog from last week to see where it was at then.  It will also be interesting to see next week as it is Thanksgiving week.  Spec building B week 2 55th Place B &G.  HB fuller 004 55th Place B &G.  HB fuller 012 We all are looking for a break and some time to spend with family and friends.  I will post next week to see how far we get.

Filed Under: Uncategorized Tagged With: follow this build, Industrial and Technology, spec warehouse, wareshouse and technology

Watch this building being built

November 13, 2015 by Perry Leave a Comment

sss holdings 014 sss holdings 016Each week I am taking a picture of this 7500 Square foot building being built at the NW 55th Place Commercial and Technology Park in Gainesville. What the progress every Friday.

Filed Under: Uncategorized Tagged With: follow this build, Industrial and Technology, Warehouse custom built

Coldwell Banker M.M. Parrish
Coldwell Banker M. M. Parrish Realtors

352.665.9731
ppursell@mmparrish.com

5808 NW 39th Ave
Gainesville, FL 32606

5110 SW 91st Drive
Gainesville, FL 32608