E-Commerce and the Warehousing Dilemma

It’s 2016, and E-Commerce is thriving more than ever. Shopping from your smartphone, tablet, or laptop is highly convenient and diminishes the need to physically run errands and visit shops that provide the same selection as online stores. According to Dwight Hotchkiss, a Colliers executive, E-Commerce has seen a 15% growth in the first quarter of 2016. Many warehousing facilities that fulfill orders have been relocating and upgrading to account for this growth. Based off of Colliers data, growth in ECommerce has lead to a higher demand for warehousing space, and leasing has been recorded up 10.7% year after year. Only 6% of spaces are currently available, which is the lowest recorded rate since data first started being collected. There is currently around 204 million square feet of new warehousing space under construction according to a Colliers report, and they suspect that this rapid construction is not going to stop any time soon.