While we have spoken a lot about how e-commerce has seen a massive spike during this pandemic and that also means that people are changing their behaviour and shopping online more and more.
But that is not the entire story and we should note that e-commerce is something that also needs a physical presence. For those who think that everything related to e-commerce happens online, they are wrong. Because all e-commerce companies require physical warehouses and they usually buy those places or rent them.
During these times when we know that economies are struggling to make ends meet because of the lockdown, e-commerce is booming and that is the reason why there is an unprecedented boom in warehouse prices. This is because while some companies are selling their warehouses, companies such as Amazon are gobbling them up at lower prices and expanding their warehouse locations.
A new report has emerged which tells us that the commercial real estate is now seeing a new trend where warehouses are the hottest investment opportunity and those who have them are likely to benefit as well. Not only e-commerce but logistics companies are also looking at warehouses for their needs and that has also caused a demand in these locations.
The report mentions that “Lincoln Equities Group just placed a nearly 200,000 square foot warehouse it is building on Long Island up for sale for over $70 million after leasing it to Home Depot”.
Another report from Boeing mentions that “in Torrance, California, the jet maker Boeing is offering a warehouse it owns up for sale, according to a spokesman for the company”. This means that while companies struggling right now are selling their locations, others are seeing it as an opportunity to grab them with both hands. And we believe that this trend will continue.