2C — July 12 - 25, 2019 — Pennsylvania — M id A tlantic
Real Estate Journal
www.marej.com
P ennsylvania
Rock Commercial Real Estate E-Commerce’s impact on our Regional Industrial REmarket
Recently Closed Loans
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s brick-and-mortar re- tail slows and e-com- merce grows, the Cen-
flexibility.” E-Commerce and Real Estate in Our Regional Industries The response to the increase of e-commerce is evident in the volume of local warehouse con- struction currently underway. “We are experiencing an overwhelming demand for e-commerce distribution facili- ties in our area to support the increasing demand for delivery of goods to the consumer,” Hodge said. “Being located on major interstates, including 83 and 81, and the ability to continued on page 4C
E-Commerce Trends Business-to-consumer e-com- merce has steadily increased, with sales growing from 0.8% of the nation’s Gross Domes- tic Product in 2009 to 1.96% in 2018. E-commerce sales crossed the $517 billion-mark last year – a significant 15% jump from 2017, and revenue is expected to grow by 7.8% by 2023, according to Statista. Ad- ditionally, e-commerce makes up 14.3% of the total retail sales – factoring out purchases that cannot be made online such as fuel and restaurants. Those trends are shifting how developers assess the needs of the market. “We are seeing a demand for larger big-box spaces rang- ing from half a million square feet to 1+ million square feet,” Hodge said. “While looking at a space, it is important to take into consideration the shape of the tract, its full utiliza- tion, accessibility to utilities and a growing emphasis on an available workforce. Property owners are now designing to allow for greater car parking and trailer spots to adapt to the e-commerce demands. Ad- ditionally, there is a greater emphasis on higher ceilings (40+ feet) to allow for greater
tral Pennsyl- vania real es- tate market is experienc- ing increased opportunities for expansion and invest-
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me n t f o r s u i t a b l e spaces in the industrial mar- ketplace. Since the concept and incep- tion of e-commerce, we have witnessed emerging trends in the e-commerce industry that are driving demand for big-box distribution facilities in high-access geographies. Central Pennsylvania benefits from several convenient main travel arteries, and has become a prime investment region for investors and companies seek- ing distribution solutions that reach a broad employee base, and support transportation re- sources for larger distribution facilities. Kevin Hodge, a ROCK In- dustrial Brokerage Advisor, ex- plains the effects of e-commerce on the regional real estate mar- ket, and how it impacts demand for industrial real estate. Kevin Hodge
Pennsylvania
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