For those looking to invest in the changes to the retail landscape, industrial properties continue to be an interesting opportunity. It seems that now strategically located industrial properties are increasing in demand due to the growth of online grocery sales. BisNow has an excellent look at this continuing trend, Online Grocery Sales Skyrocketing Despite Dearth Of Warehouse Space.
The demand for home delivery of groceries ordered online is skyrocketing. Everyone wants what they want and they want it now, said Michael Roe, an account executive with warehouse operations firm DMW&H.
According to a recent report by the data measurement and analytics company Nielsen, online grocery sales reached $20.5B in 2016 and are expected to climb to $100B by 2025 and make up 20% of total grocery retail sales.
The logistical side of this trend is still in the infant stages, Prologis Investment Officer Darren Kenney said at the NAIOP CRE.Insights: The Last Mile conference in Seattle.
Kenney spoke at the conference with Roe and JLL Executive Vice President Matt Powers. “We think grocery is the least-penetrated of the e-commerce game,” Kenney said.
Savvy real estate investors, will be on the lookout for off-market industrial real estate investments across Philadelphia and strategic locations across the suburbs like in Delaware and Montgomery County.
Owners of older industrial properties looking to sell for cash may also find this an opportune time to sell their real estate quickly.
Warehouse logistics are undergoing a seismic shift, Kenney said. In the past, warehouses were for storage. That meant remote locations were fine as long as they were close to a freeway.
“The whole supply chain has changed,” he said. The new goal is to be as close to urban centers as possible.