There are always precursors. Those who have a clear vision of the future, simply by looking at the present. These people have understood, a few years back, that the market for distribution centres and warehouses would be growing exponentially, thanks to e-commerce. The year 2021 saw the largest growth in this market, and 2022 will surely prove to be more of the same.
The Rise of e-commerce
It was written in the stars… or almost. When the internet came to life, visionaries imagined that people would switch their shopping habits from roaming shopping centres to roaming the World Wide Web. Although it took quite a few years for the change to really become important, there is no doubt that it did happen. What really completed the circle was the arrival of the pandemic. Locked inside their home, people had to find things to do with all the time they had on their hands. Many went “shopping.” And as companies were crumbling under the weight of “no customers allowed” inside their stores, boutiques and restaurants, Amazon was once again gaining more share of the markets. In fact, while other companies had to lay off people, they were desperately hiring.
Suddenly, companies that had not already developed an e-commerce platform online, had to rush and open one. They turned to websites like https://www.12handz.com/ in order to learn how to gain visibility for their products, through digital marketing. The race was on to beat their competitors and to start compensating their losses through online sales. But for the product to get into someone’s hands, wherever they are in the world, it often needs to be deposited inside a distribution centre or a warehouse first. And thus, the need for both grew dramatically and will continue to do so, for years to come, without a doubt.
Investors are Suddenly looking into Logistics Real Estate
Those interested in history always like to find out why something happened in the first place, to create a particular need, which then turned into societal changes. Now that we know how it happened, let’s look at what is going on right now. Warehouses and distribution centres were not considered as A-type assets in real estates, just a few years back. They were especially ignored by people looking to invest into real estate, preferring to buy properties they could rent to families. But now, the word is out, and all serious investors are trying to get their piece of the pie. However, since the pie isn’t large enough (for them, but mostly to keep all the boxes in transit), they now need to go see construction companies and have them built from scratch.
There is no doubt that this will be a safe investment. The high demand is not about to slow down. Of course, you need to find out what the main actors of e-commerce need, so that you can offer it to them. Otherwise, competitors will take the space in no time, and you will be left with the small operations to run, which will be complicated and a lot less interesting, financially speaking.
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