The spread between Retail and Industrial rents is starting to compress

0
248

By Gillam Campbell, JLL ·

May 14, 2021

The rate impact of e-commerce. As consumer delivery expectations have tightened over the past few years, the need for e-commerce distribution space is pushing Retail and Industrial rents closer together. 2019 saw the beginning of the
rent compression, which coincides with a big jump in ecommerce’s share of retail sales.

Rents on the rise, now and later. Over the past ten years, Industrial rents grew by nearly forty percentage points more than Retail. We expect this trend to continue as more and more new Industrial space hits the market and is leased up and as the low vacancy rates continue to set the stage for a competitive leasing environment. Both of these factors (the newer supply and leasing competition) contribute to a rise in Industrial rents.

Up next. The next question to answer is where are rents compressing the most? Are Urban Logistics markets seeing a tighter spread between the two property types? Are neighborhood Retail centers seeing less of a drop in rents than malls? JLL’s Urban Logistics team has the insights.

For more information, contact: Gillam Campbell | .(JavaScript must be enabled to view this email address)



Subscribe to Supply Chain Management Review Magazine!

Subscribe today. Don’t Miss Out!
Get in-depth coverage from industry experts with proven techniques for cutting supply chain costs and case studies in supply chain best practices.
Start Your Subscription Today!

Article Topics

E-Commerce &middot

JLL &middot

Retail &middot
All Topics

Link to Original Source
[email protected]
2021-05-14 05:45:00

LEAVE A REPLY

Please enter your comment!
Please enter your name here

This site uses Akismet to reduce spam. Learn how your comment data is processed.