Industrial Insights - March 2021 Newsletter
Opening Commentary
The newsletter highlights Prologis research emphasizing structural changes in logistics real estate post-pandemic. Key takeaways include:
Structural Growth: "The long-term structural growth rate of logistics real estate has risen" with consumption-driven uses gaining prominence over production and trade-oriented functions.
Retail Transformation: E-commerce penetration is projected to increase approximately 150 basis points annually over five years, requiring physical retailers to develop rapid replenishment capabilities.
Global Supply Chain Evolution: Companies expanding internationally need modern, decentralized distribution networks. This modernization could generate demand for "three to four billion square feet or more of modern logistics stock."
Location Criticality: Supply chains function as competitive advantages, making strategic real estate positioning essential.
Cost Perspective: Real estate represents only 5% of supply chain costs, meaning network optimization decisions can yield substantial returns exceeding real estate expenses.
Featured Activity
Three property transactions showcase successful leasing outcomes:
- 9400 Norwalk Blvd: 48,384 SF lease secured for long-term triple-net arrangement with national credit tenant - 9830 Norwalk Blvd: 30,911 SF e-commerce property lease completed - 15220 Canary Ave: 93,280 SF industrial building completed comprehensive renovations including new paint, flooring, landscaping, and yard improvements
Market Reports & Media
Market reports available for Los Angeles County, Orange County, Inland Empire, San Diego, and national markets. An upcoming book launch is scheduled for April 27th, with podcast interviews featuring industry leaders discussing industrial real estate investment and development strategies.
