Businesses are transforming from conventional to eCommerce. The US will need an additional 1 billion square feet of warehouse spacing to fulfill the growth of eCommerce.

According to the recent reports, the need for fulfillment centers is driving 50 percent of industrial transactions today, whereas it was 35 percent before the pandemic.

According to the sources, With the growing time and technology, eCommerce sales in the US have amounted to $602 billion in 2019, whereas it is expected to grow at least by 20 percent by the end of this year. As per the predictions of Digital Commerce 360, The annual eCommerce sales in the USA could reach up to $1.5 trillion annually.

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JLL’s report quotes Chris Caton, head of global strategy and analytics for Prologis, saying his firm “estimates these customers will require 1.2 million square feet of distribution space for each $1 billion in sales, which means e-commerce requires three times space as traditional through-put distribution.”

JLL said its own research validated the findings and that an additional $900 billion in annual eCommerce sales would increase demand for warehouse space by 1 billion square feet.

JLL also forecasts the U.S. will need an additional 100 million square feet of cold storage space within the next few years.

“Investing in industrial real estate was never considered as attractive as office or retail in the past,” the report says. “However, this dynamic has changed, in large part, due to the growth of e-commerce. Investing in industrial real estate is red hot and the continued growth of consumer online shopping drives the need for additional warehouse space. Industrial real estate — including plants, warehouses, and distribution facilities — has been the investment ‘asset class of choice’ the past several years and demand are on the rise.”


Amin Lalani is a subject matter specialist in Internet Retailer with several articles and research paper published so far. He has done M.Phil from IoBM in Marketing with emphasis on Internet Retailing. Besides academia he has various other certification like SAP, Google Analytic, Microsoft Small Business Solution Provider and more.

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