Rapid Delivery and the Need for Industrial Real Estate Space

February 12, 2019

A decade ago it was not uncommon to wait over a week for something you ordered online to be delivered to your door. However, when you look outside your window today you might see multiple delivery trucks combing your neighborhood to make their deliveries. Many of the items they carry could have been ordered as soon as the day before. This convenience does come with a price that many companies such as Amazon are willing to pay.

Finding a place to put all of these goods in a convenient location so that two-day deliveries can be made has been a challenge but the U.S. industrial real estate sector is reaping the benefits.

A recent survey by the National Real Estate Investor concluded that the bullish cycle for the industrial sector had at least 7 more months to go. Consequently, about 50 percent of respondents said the level of development is about right while 27 percent said there was too little development. Of all respondents surveyed, 75 percent said they expect rental rates to rise within the next 12 months.

“Delivery for products is reaching an all-time high—there is a demand that needs to be filled. As that demand increases, so will the occupancy—and development—of the industrial assets that house them.” one survey respondent wrote.

Recently, San Antonio is seeing great industrial growth. For example, HEB’s new Super Regional Grocery Warehouse, Microsoft’s $80 million data center on the far west side and Agaci’s latest $10 million expansion to the city’s East Side have all taken place during this bullish cycle. More growth may be on the horizon for the Alamo City, if you have questions or need insight advice please call: 210.828.9261