Covid has changed a variety of ways on how we live our lives – and shopping is one of them. Real estate is seeing businesses trying to search for bigger commercial spaces to house the products they need for growing e-commerce demands at record pace.
JLL, a commercial real estate services firm, released a new report showcasing big businesses – Walmart, Target, Big Lots, TJX, and Costco – aggressively competing for more warehouse space. The main reason? Amazon has been locking down and buying up warehouses across the country; other businesses are trying to catch up.
What does this surge in commercial spaces mean for prices? According to CBRE data, commercial spaces surged nearly 10% in the first five months of 2021 compared to the year prior.
A great example of warehouse prices spiking is in the town of Columbus, Ohio. Columbus is predicted to jump 61% in 2021 compared to 2020 – because nearly half of the nation’s population is within a one-day drive.
Craig Meyer, President of JLL Industrial for the Americas, explains, “We’ve been on a long-term journey of shifting consumer behavior from buying in stores online. That’s the existential driver for demand in the U.S.”
Real estate experts are turning their eyes to the commerce industry – and we’ll have to wait and see how 2021 shapes up.
Stop by Alliance Title’s Blog for more real estate news.