What the New Reality of Shopping Means for Superstores & Consumers

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If there is one legacy from 2020, it will be that the U.S.-China trade war, combined with the pandemic, has likely altered the industrial real estate sector for good. Even with trade tensions declining and expected to continue to do so under a Biden administration, companies have seen firsthand how general disruptions in trade and unexpected costs like tariffs can impact production and their bottom lines. 

Add to that a global pandemic, where factories in Asia, then Europe, and finally North America shuttered en masse and where shipments by air and sea came to a virtual halt, and companies are already shifting their focus away from just-in-time delivery to just in case. 

The pandemic also highlighted how reliant companies are on global trade – and how reliant they are to global production and distribution networks that can quickly come to a full stop or fail outright when an unforeseen external event occurs. Companies will be looking for more space much closer to home to produce the goods their customers need and want. 

They are already looking at properties where they can physically see, feel and touch what they make – and have control over how those goods are produced, how quickly they are made, and how expediently they can get out the door and into their customers’ hands. 

Raising retailers’ inventory-to-sales ratios and ramping up onshore manufacturing to increasing delivery speeds and decreasing delivery times of how goods get from the factory floor to the store to peoples’ homes are all working in favor of industrial warehouses – and all types of properties and regions that cater to that segment of the real estate market.

In a free webinar, sponsored by Crexi in partnership with TheStreetFernando De Leon, Cri’s first investor, Founder of Leon Capital weighs in on the industrial and warehouse market.

Watch the video above for more.