Tampabay / July 27, 2016
Thank you to Jennifer LeClaire of GlobeSt.com for featuring our very own John Jackson of Tampa Bay Industrial Advisors in their recent blog post The Real Impact Of Two-Hour Deliveries On Industrial Real Estate! Check it out below:
According to the US Commerce Department, domestic e-commerce sales have grown an average of 15% year-over-year since 2010.
ORLANDO—There’s no lack of discussion about how e-commerce is impacting industrial real estate. Although some believe its impact is greater than others, all agree that the impact is undeniable.
GlobeSt.com caught up with industrial real estate specialist John B. Jackson to discuss the e-commerce issue and get his thoughts on where Central Florida’s industrial market is headed in part two of this exclusive interview. You can still read part one: Two Emerging Hotspots in Central Florida Industrial.
GlobeSt.com: How are changes in consumer trends, such as e-commerce, affecting the industrial market?
Jackson: E-commerce is evolving and consumers prefer the convenience of same-day and two-hour delivery services. The effects are evident not only through new development of large fulfillment centers along major transportation corridors, but also through increased demand for 30,000- to 100,000-square-foot facilities that are close to the urban core and can support last-mile and two-hour delivery.
Supply chains continue to decentralize as more products are purchased on mobile devices. According to the US Commerce Department, domestic e-commerce sales have grown an average of 15% year-over-year since 2010. We expect that to continue to increase as e-commerce players move into direct competition, and sometimes collaboration, with grocers and drug stores through last-mile delivery.
GlobeSt.com: Where do you think the industrial market is headed?
Jackson: Fundamentals support a strong finish for 2016 with some uncertainty headed into 2017. Our economy has benefited from 76 straight months of slow and steady recovery. By comparison, the average length of an economic cycle since World War II is 58 months.
With credit beginning to tighten, upward pressure building on interest rates, and diminishing global economic growth prospects, there is possibility of a slowdown in the industrial market in the coming 18 to 24 months. However, because of strong local and regional growth, we don’t expect the Central Florida market to retreat as far or as fast as other primary industrial markets across the country.
Central Florida CRE remains strong with Multifamily, Retail and Industrial leading the way. Are You In The Know? How can you profit? Join us at RealShare Central Florida on September 7th for impactful information from the leaders in Central Florida CRE. Learn more.
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