These Rapidly-Expanding Industrial Tenants Should be on Your Radar
Commercial real estate’s industrial sector is constantly moving and shaking – and right now, there is too much activity in the warehousing scene to ignore.
Namely, there are a few big players in the industry that deserve your attention. The warehousing arena is seeing massive expansion – but, these acquisitions aren’t generated from a myriad of players. Instead, it’s just a few rapidly-expanding tenants who’ve all got their eyes on the prize.
While they continue to absorb industrial space, make sure you know whos-who in today’s warehousing landscape. These are the most robust industrial tenants – some of which you’ll be guessing, and others that will be surprising. Let’s dive in:
Coming in first on our list is, predictably, Amazon. This retail giant is famous for upending competitors and making magnanimous bounds that push the boundaries of modern industry. Right now, the online retailer’s appetite for warehouse assets is insatiable.
After running into a few difficulties initiated by the pandemic, Amazon is back on its grind and making the most of its supply chain potentials. If Amazon’s not on your radar of powerful warehousing tenants, it’s time to readjust.
Home Improvement Retailers
Up next is popular home improvement megastore brands, Home Depot and Lowe’s. Both of these home stores have been active in expanding their warehousing presence, publicly aiming to enhance their e-commerce capacities. Distribution centers and order fulfillment sites are at the top of their industrial shopping lists.
Lowe’s has reportedly opened 13 new warehouse facilities over the past 18 months, while Home Depot announces investment plans reaching $1.2B. Home Depot is planning for 170 new warehouse sites and 100 more last-mile centers. In efforts to keep pace with competitors, these home-essential stores are striving to deliver one-day and same-day order fulfillment on all online purchases.
Grocery Hitting the Scene
2020 has been a good year to be involved in the grocery business. Throughout the pandemic, when other retailers were sinking, grocery stores found unmatched success. And now, the grocery market continues to expand by diving headfirst into CRE’s industrial landscape.
As food and beverage e-commerce rose to unforeseen popularity during the pandemic, various grocery brands are making a combined effort to become top players on the industrial scene. In Q2, parallel to COVID’s most intense period, grocery store brands have doubled their presence within industrial’s framework.
Right now, Target is standing as a leader for grocery-centric warehouse expansion.
Third-Party Logistic Companies
3PLs, namely DHL and FedEx, are last on this list of warehouse tenants making their presence known throughout the market.
Popular order fulfillment and distribution companies are shifting their focus towards expansion in order to live up to their employer demands. These 3PLs are targeting the last-mile of delivery to streamline the shipping process and ultimately meet the constricting delivery windows set by their forward-thinking clients.
CRE professionals can’t afford to ignore these powerful forces within the industrial scheme.