E-Commerce “Big Box” leasing expected to remain strong says JLL

Nearly 20% of all leasing activity for ‘big box’ transactions (over 500,00 square feet) from 2010 to 2016 were centered around e-commerce,” says Aaron Ahlburn, Senior Vice President and Director of Research for the Industrial property sector for JLL's Americas region. But it’s not just “last mile” players in the game.

“Be it from ship, cargo airplane, rail, truck, or delivery van – product needs to quickly move from e-fulfillment centers to the end-buyer, and there are broad industrial & logistics real estate implications as e-commerce supply chains are perfected,” says Ahlburn.

Looking at the last two years alone, that number is now over 20%.  Markets servicing major metropolitan areas and population centers have benefited the most, like the Inland Empire in Southern California, Central Pennsylvania, Atlanta, Dallas / Fort Worth, Chicago, and New Jersey – with other Midwestern markets like Indianapolis, Cincinnati, and Columbus also acting as key transportation & logistical hubs.

“Demands from e-commerce are complex – from having the right inventory and SKUs in the right facility to being able to deliver on consumer timing and pricing expectations, requiring the employment and management of overlapping modes of transport,” observes Ahlburn. “That may necessitate sourcing products from overseas, moving them from ports of entry to regional distribution centers, and efficiently transporting them from e-commerce fulfillment sites."