Evolving Retail Market Boosts Need for Industrial Spaces

Retail continues to make up a significant portion of the US GDP. However, the way in which consumers shop is transforming the market. The number of people purchasing products online is increasing tremendously. This shift has retailers rethinking their business plans. Less money is being spent on brick and mortar spaces, and more effort is being put into websites and housing products.

With the considerable increase in online shopping, retailers are seeking more efficient ways to conduct business. One of the current trends, known as “I-tailing” is sweeping the nation. This concept refers to retailers maintaining a small, inexpensive storefront, while keeping the majority of products stored in warehouses. These warehouses are designed to quickly and easily ship products to customers. Overhead cost for a warehouse and website is much less expensive than maintaining large retail spaces. These warehouses are often located in big cities, close to major shipping hubs. Partnerships with shipping companies like UPS and FedEx are an important part of this transformation. The overall cost savings of I–tailing is also encouraging retailers to bring business back to the United States. This could have a positive impact on the US economy as a whole, along with the real estate industry.

Savvy real estate investors and developers are beginning to recognize the potential in the I-tailing sector. They are putting more time, money, and effort into industrial spaces to support this new trend. With the continual growth of the Internet and online shopping, this sector is expected to see continuous growth for many years to come.