In huge demand right now: Warehouses

first_img Focus on Business… OpportunityFrom The HustleThe pandemic turbocharged sales for ecommerce companies.That’s the 1st-order effect.So — like the high-minded business publication we are — we have to ask: “What are the 2nd-order effects?”To facilitate all of these juicy online sales…… warehouse space is being snapped up at a blistering pace. According to The Economist, leases for new logistic spaces are up big in Europe (+16% YoY), America (+21%), and Asia (+32%).Ecomm players of all types — from supermarkets to medical suppliers to D2C shopping — are getting in on the action. [Contractor insurance as well.]Interestingly, online retail requires 3x the space of brick and mortar, because shoppers expect more options.This is leading to a 3rd-order effectThe value of warehouses is booming, with logistics making up 20% of real estate investments in 2020 (vs. 10% in 2015).The boom is running into a land supply problem, per The Economist:Industrial land has been turned into residential land in major citiesRestrictive zoning laws prevent the conversion of large existing lots like shopping mallsThe public is averse to large warehouses, which are perceived as noisy and dirtyTo cope, companies are getting creative: Amazon is turning golf courses in America into distribution centers and an empty car lot in the UK into a delivery hub.We think it’s safe to call that one a 4th-order effect. Free webinar for job seekers on best interview answers, hosted by Goodwill June 11 Please enter your name here LEAVE A REPLY Cancel reply The Anatomy of Fear Share on Facebook Tweet on Twitter Please enter your comment! Save my name, email, and website in this browser for the next time I comment. You have entered an incorrect email address! Please enter your email address here TAGSBusinessEcommerceLandOnline SalesReal EstateRetailThe HustleWarehouses Previous articleSmart Ways You Can Use To Quickly Resolve A Road AccidentNext articleTweets and emails helped kill a FL bill to place a cap on high-potency medical marijuana for patients Denise Connell RELATED ARTICLESMORE FROM AUTHOR Support conservation and fish with NEW Florida specialty license plate last_img read more