Big-box distribution centers are back in fashion, with a record number of facilities now under construction nationwide, as reported by Robert Carr in National Real Estate Investor.
The reason for the comeback is the rise of eCommerce.
Almost 100 big-box facilities, totaling about 60 million sq. ft., were delivered to the market in the past 12 months, according to a recent report from Colliers International.
Only 157 of the 1,908 U.S. big-box facilities are currently empty, and even though another 20 million sq. ft. of new space is delivered each quarter, these properties have only a 7.4% vacancy rate.
“This is happening because of the incredibly fast shift in demand for e-commerce; this has never happened before in the supply chain,” explained James Breeze, national director of industrial research at Colliers.
“Absorption continues to outpace new construction, and while some retailers are starting to be able to compete with Amazon, there are others that are just getting started on their e-commerce strategies. Companies are becoming more adept, and investment is shifting away from stores to the distribution centers.”
Read the original article.