Pic: CBRE
Over the next five years, 135 million sq m of additional logistics space dedicated to e-commerce will be needed globally to support the a $1.5-trillion uptick in internet sales, according to a report by US commercial real estate services and investment firm CBRE Group. The United States will need to add 30.65 million sq m of warehouse space dedicated to online fulfillment by 2025.
The report expects e-commerce sales in the United States to increase to 26 per cent of retail sales by 2025.
The top factors driving e-commerce growth globally are demography (urban population, population density and employment in services), usage (digital skills, Internet use, mibile Internet sales share and dominant e-commerce players), cultural payment preference (credit/debit card use, online bill payment and digital payments), and infrastructure access (fixed broadband subscriptions in market, transport infrastructure and timeline of shipments).
E-commerce penetration will continue to grow in established markets. Less established markets will gradually catch up as the presence of e-commerce drivers in these markets is gradually increasing, according to the report titled ‘Global E-Commerce Outlook’.
Vacancy rates for industrial real estate space have been low across the United States for months. "[A] significant amount of new construction will be needed in the next few years just to keep pace with robust demand," John Morris, executive managing director and leader of CBRE's Americas industrial and logistics and retail businesses, said in a statement.
Fibre2Fashion News Desk (DS)
Over the next five years, 135 million sq m of additional logistics space dedicated to e-commerce will be needed globally to support the growth of internet sales, according to a report by US commercial real estate services and investment firm CBRE Group. The US will need to add 30.65 million sq m of warehouse space dedicated to online fulfillment by 2025.