JLL: Industrial real estate demand to grow to 1B square feet by 2025
July 09, 2020
U.S. demand surges alongside e-commerce’s pandemic boom
COVID-19 pandemic and the shelter-in-place policies that ensued have
accelerated e-commerce growth and the need for warehouse space across
the nation. JLL expects e-commerce sales could hit $1.5 trillion by 2025
— which would increase the demand for industrial real estate to an
additional 1 billion square feet.
“Since 2011, industrial rent growth has been positive and vacancy rates have been at historic lows providing attractive, stable, long-term returns to investors. These solid fundamentals and the fact that e-commerce still has a long runway for growth makes industrial real estate the darling of the commercial real estate industry,” said Craig Meyer, President, JLL Americas Industrial.
According to Digital Commerce 360, e-commerce sales hit $602 billion in the U.S. at the end of 2019. Combined with the new projections, JLL predicts total e-commerce sales could hit $1.5 trillion by 2025.
is among the most intensive uses of logistics real estate,” reports
Chris Caton, Head of Global Strategy & Analytics for Prologis, the
largest owner, operator and developer of logistics real estate in the
world. “Prologis estimates these customers require 1.2 million square
feet of distribution space for each $1 billion in sales, which means
e-commerce requires three times the space as traditional through-put