Retail-to-industrial property conversions are accelerating across the United States, driven by the growth of e-commerce, according to research by CBRE Research, an arm of global real estate services firm CBRE. There are now 59 such projects that have either been completed, proposed or are under way since 2017—up from 24 in January 2019, the survey found.
These projects total approximately 13.8 million sq. ft. of retail space converted to 15.5 million sq. ft. of industrial space.Retail-to-industrial property conversions are accelerating across the United States, driven by the growth of e-commerce, according to research by CBRE Research, an arm of global real estate services firm CBRE. There are now 59 such projects that have either been completed, proposed or are under way since 2017-up from 24 in January 2019, the survey found.#
Under-performing retail sites have become an ideal location for last-mile warehouse developers. They are often located within population centres, connected to utilities and have large parking lots with multiple points of ingress and egress.
Many are also freestanding big-box stores with existing dock doors and clear heights compatible with industrial use. Those without compatible design formats are typically demolished and replaced with modern warehouse facilities, CBRE said in a press release.
The top five markets for these conversion projects are Milwaukee, Cleveland, Chicago, Omaha and Dallas/Ft. Worth, accounting for one-third of the total number of projects nationally. This is primarily due to the number of ‘dead malls’ in the Midwest.
Looking ahead, the changing tide of retail, the growth of online shopping and the steadily increasing demand for industrial space could extend this development strategy to higher growth markets in the Southeast and West regions, said the survey.
The after-effects of COVID-19 will accelerate this trend, it added.
Fibre2Fashion News Desk (DS)
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