I read a paper this week from CBRE’s Global Research and Consulting Group entitled The Impact of E-Commerce on Industrial and Retail Real Estate. With the growing trend of retailers toward an E-commerce framework the paper discusses the impact on their distribution and warehouse facilities. The paper identifies five things that E-commerce tenants are consistently looking for when leasing these facilities:

1. Increased Infrastructure such as conveyors and sorting systems.

2. Heavy Power.

3. Location within 24/7 zones.

4. Higher clear height to accommodate higher racking.

5. Abundance of land for parking and transport truck turning radius.

Because of these requirements, the E-Commerce Tenants are often choosing build-to-suit options rather than modification of older existing buildings. Siting Amazon as an example, they have announced 25 Million sq. ft. of build-to-suit plans for California, New Jersey and Texas. Understanding these new demands will help developers of Industrial buildings develop more suitable product for E-Commerce tenants.

To read the entire paper follow this link. The Impact of E-Commerce on Industrial and Retail Real Estate