By David C. Smith
Industrial Market Growing Strong
As of Q1 2017, online sales make up 8.5% of total U.S. retail sales, which is twice the proportion it was in Q1 2010. Factoring out the sale of items not normally purchased online such as fuel, automobiles and sales in bars and restaurants, eCommerce accounts for 11.7% of retail sales. With the growth in eCommerce, the supply of and demand for industrial warehouse space has been growing rapidly. In the three years ending in 2016, the supply of industrial product increased by 550.3 million square feet (MSF), which was well below the growth in demand (i.e., net absorption) over that same time (825.5 MSF). Increases in industrial space have driven growing demand for employees to operate warehouse distribution centers. In the past twelve months ending in June 2017, the Bureau of Labor Statistics (BLS) estimates that Transportation and Warehousing employment grew by nearly 97,200 jobs, which represents an increase of 2.0%.
DAVID C. SMITH
Occupier Research, Americas
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