They often say it takes thirty days to form a new habit. So with nearly a nationwide shelter-in-place order on Americans for at least that long, people are likely to continue some of their quarantine behaviors once the orders are lifted. These changes in behavior will have a ripple effect, stretching across many different business sectors, one being commercial real estate. Less retail storefronts, larger warehouse needs, and the desire to bring manufacturing stateside are potential outcomes.
We have all experienced the shortage of things like toilet paper, cleaning products, and hand sanitizer firsthand over the past few weeks. This will likely trigger both consumers and companies to change their habits. Consumers will begin to stockpile an additional supply of these types of products in their homes to be prepared for the threat of another event of this nature. Companies will re-examine their approach to the way their supply chains function. They will begin to increase the amount of products they have readily available, which will trigger a greater demand for warehousing across the country.
Traditional retail was already trending from brick and mortar toward e-commerce, but this pandemic will fast-forward that transition. While grocery stores have maintained a strong traditional shopping model with large stores in neighborhood centers, their model is likely to evolve as well. With a lot of consumers forced to begin ordering their groceries for pickup or delivery, we have reached the tipping point of a much more streamlined model. There is expected to be a surge in demand for cooled warehousing in more densely populated areas to allow for timely delivery of perishable goods to a large number of consumers.
The lack of critical items like ventilators, masks, and other personal protective equipment during the pandemic has been highly publicized. The United States’ dependence on cost effective foreign manufacturing has shown itself to be a glaring Achilles heel over the past month. While companies in other industries have made efforts to help by shifting their facilities and workforce to produce these critical goods, shortages could lead to some manufacturing shifting back to the US. Companies that make essential items will look to operate at least one production facility domestically to limit foreign dependence. This could lead to new opportunities for areas in the US with low labor costs and the ability to offer incentives to companies.
How Commercial Realty Advisors Can Help
The demand for additional storage, whether for medical equipment, dry goods or perishable groceries, will require creative solutions from commercial real estate firms. In the Triad of North Carolina there is ample land available for warehouse development, empty space that can be re-purposed for warehouse needs, and existing warehouse facilities that are ready for immediate use. Commercial Realty Advisors, experienced full-service commercial real estate providers, will evaluate all opportunities to determine the best location possible – and under the most favorable terms.
Commercial Realty Advisors is developing three industrial buildings, ±920,678 square feet in total, that are ideally suited for cooled or traditional warehousing. Located in Mocksville, NC, within the Piedmont Triad region and just off I-40, the Central North Carolina site is within 30 miles of four additional interstates and is situated between the Triad and Charlotte Metros – the two largest industrial markets in North Carolina. The first phase is already complete, ready for upfit. Click here to visit the Davie Industrial Center website.
For more information about filling our community’s warehouse needs, contact an experienced broker with Commercial Realty Advisors at 336-793-0890.