E-Commerce and the Next Wave of Industrial Demand
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Traditional in-store retail is moving online. As e-commerce companies shrink delivery windows, offering “same day” services, “last mile” industrial must arrive to facilitate this same-day delivery of goods. Read the full white paper here: http://bit.ly/2vlhGP2
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E-Commerce and the Next Wave of Industrial Demand
- 1. E-COMMERCE AND THE NEXT WAVE OF INDUSTRIAL DEMAND
- 2. Traditional in-store retail is moving online
- 3. 2000: 2% of retail purchases made online $6 Billion
- 4. 2000: 2% of retail purchases made online 2017: 10% of retail purchases made online $6 Billion $101 Billion
- 5. This trend is a STRUCTURAL CHANGE
- 6. Since 2000, retail occupancy has dropped from 92% to 80%, while Industrial product has maintained an average occupancy over 90% while adding 150 million SF of space
- 7. E-Commerce and Occupancy 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 92% 93% $120,000 $100,000 $80,000 $60,000 $40,000 $20,000 $- 80% 95% 90% 85% 80% 75% 70% SalesinMil.USD %Occupancy E-Commerce Sales Industrial Retail
- 8. This is because online sales depend on industrial, rather than retail space
- 10. E-commerce warehouses have evolved to capitalize on this shift
- 12. DEEP AND WEAR-RESISTANT concrete truck courts
- 14. HIGH THROUGHPUT TRAFFIC LAYOUTS including cross dock configurations and internal loop roads
- 15. What’s NEXT?
- 16. E-commerce companies are shrinking delivery windows, offering “Same Day” services
- 17. “Last mile” industrial which is designed to facilitate this same-day delivery of e-commerce goods
- 18. LAST MILE gets its speed from being:
- 20. 7+ times more efficient than retail equivalent
- 21. As e-commerce advances, regional hubs like Atlanta play an important role in the move to “last mile” industrial
- 22. Population growth will increase demand for e-commerce and same-day deliveries, however...
- 23. Population growth also creates traffic, making same-day delivery more difficult
- 24. Drones offer a possible solution, but commercial use is constrained by FAA regulations
- 25. CONCLUSION
- 26. E-commerce will continue to outperform the economy as a whole, and same-day delivery services project to outperform online sales.
- 27. This means demand for smaller-yet- high-function “last-mile” facilities will drive the industrial segment through this cycle and into the next