Bad for Retail, Good for Industrial
One of the most obvious real estate impacts of COVID-19 has been the heavy hit retail property has been taking. Retail owners were already being described as facing an apocalypse thanks to eCommerce and that was before the new coronavirus swept across the country and began punishing even retailers who were relatively eCommerce-immune. So how does that effect Minneapolis Warehouse Space?
Winners & Losers
The challenge facing retail real estate is matched by the opportunity now present in the Minneapolis industrial property business. Again, this is an acceleration of existing trends. It doesn’t matter whether a retailer sells out of a brick and mortar storefront or via an online shop, the products need to come from somewhere, meaning demand for logistical properties & Minneapolis warehouse space goes up in either case. The comparative growth of eCommerce and omnichannel retailers means particular growth amongst urban last-mile logistics properties, per a report in the WSJ.
How long will it last?
Against the backdrop of COVID-19, the need for Minneapolis warehouse space is only growing thanks to a trend toward inventory growth as retailers try to insulate themselves from consumer hoarding behavior & the overall business community re-evaluated their international reliant supply chains.
Source: The Daily from Propmodo
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