Demand for big-box warehouses has soared as the pandemic-driven surge in online sales sent companies scrambling for space to store and deliver goods to locked-down consumers, the WSJ reported.
- Net absorption rises: Net change in occupied big-box space increased by 51% in the first half of this year in the markets covered from the same period in 2019, to nearly 79.8 million SF, according to a report from Colliers . The report covers industrial buildings over 200,000 SF in major North American markets.
- Developers are hustling to meet demand: Some 96.5 million SF of new big-box space was added in the first half of 2020, and an additional 170.7 million SF was under construction at the end of the second quarter.
- Covid-19 accelerated timeline: E-commerce sales accounted for a record 16.1% of total U.S. retail sales in the second quarter on an adjusted basis, according to the Commerce Department. Online sales rose 31.8% from the first quarter, and jumped 44.5% year-over-year. Amazon leased an estimated 26.9 million SF in the first half of the year, and is expected to occupy nearly 98 million SF across the U.S. in 2020 alone. [WSJ+Colliers]