Newspaper article THE JOURNAL RECORD

Commentary: Lot Lines: Industrial Buildings Benefiting from E- Commerce

Newspaper article THE JOURNAL RECORD

Commentary: Lot Lines: Industrial Buildings Benefiting from E- Commerce

Article excerpt

When it comes to the industrial market, Oklahoma City has been way ahead of the game for quite some time.

Recovery in the local industrial market has been underway for more than two years as occupancy has surpassed pre-recession levels and rent rates have retuned to attractive levels. The national market has proven much slower to recover. Over the past 12 months, the market has made a strong comeback and some of the trends driving this growth nationally could end up having a positive effect on the local market.

While the substantial growth in e-commerce has plagued the retail real estate market, it has proven to be quite beneficial for the industrial sector. E-commerce has grown to such a point that ComStore reported that e-commerce spending surpassed $50 billion during the first quarter of 2013. With growth like that, 2013 holiday sales are expected to be through the roof for online retailers.

This growth has also created the need for large industrial buildings. E-commerce retailers need these large facilities to store goods and ship quickly to destinations all over the nation. E- commerce growth, along with expanding consumer goods companies, distribution operation businesses and third-party logistics firms, has helped industrial vacancy to decline as much as 2 to 10 percent in some markets over the past couple of years.

Amazon is a prime example that has consistently been expanding its physical space in large industrial buildings to handle its rapid growth in online sales. …

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