With warehouse space at a premium, some retailers are now looking to short-term “on-demand warehousing” to help them find much-needed industrial real estate.
The rise in e-commerce has caused a dramatic surge in the demand for industrial real estate. But even as developers have flooded the market with new inventory, some retailers are still having trouble finding adequate, flexible space.
Now, companies like Flexe and Stord are stepping in to help retailers find industrial space to rent in the short-term, according to the Wall Street Journal. Short-term industrial leasing, also known as on-demand warehousing, is especially helpful to retailers around the holidays, when e-commerce activity surges.
On-demand warehousing firms are popular with small retailers and online startups that don’t have existing distribution networks. But the services are now being used by companies like Walmart, which used Seattle-based Flexe to find 1.5 million square feet of warehouse space to help fulfill online orders around the holidays, according to the Journal. Ace Hardware also used Flexe to help it quickly restock stores damaged by hurricanes Harvey and Irma.
Short-term industrial leases allow retailers to remain flexible as they seek to cater to the changing demands of consumers.
Thanks to e-commerce and a strong economy, demand for warehouse space hit an 18-year-high in 2018, and South Florida is one of the hottest markets in the country. The local industrial market posted a second-quarter vacancy rate that is a 17-year low, and the trend does not appear to be waning.
Investors have remained bullish on the booming industrial sector, even as tariffs and rising interest rates have threatened to slow the market.
Source: The Real Deal
Larry W. Genet is a Senior Vice President in the CBRE, Inc. Miami, FL office. As part of the CBRE platform Mr. Genet can provide a wide range of services from local to Fortune 1000 clients including agency and tenant representation, asset or portfolio management, high level logistics, labor and data analytics prior to site selection, project/construction management, capital markets, owner user sales and valuation advisory services. CBRE is the global leader for real estate services worldwide.
Larry has extensive experience in landlord agency, tenant representation, acquisitions, dispositions and property management. As a third-generation commercial real estate professional and South Florida native, Larry boasts deep community ties, an intimate knowledge of the South Florida market and numerous professional contacts. Larry’s leasing expertise of industrial, office, land, retail and medical properties coupled with his experience in acquisitions and dispositions gives him the ability to represent a myriad of clients in the South Florida market. Additionally, Larry controls a portfolio of 13.5 million square feet allowing him to see every deal in the market. This ensures his clients never miss an opportunity. His knowledge of tenants and buyers in the market is top notch and when coupled with his team's vast portfolio, it's a winning combination.
