E-commerce Related Demand Remains key driver for warehouse space

E-commerce Related Demand Remains key driver for warehouse space

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Shifting consumer purchasing preferences toward e-commerce has consistently increased demand for warehouse space in the Greater Los Angeles/Inland Empire/Orange County (GLA/IE/OC) region. Since 2013, e-commerce related businesses accounted for 38% of gross industrial leasing activity or about 190 million sq. ft. Through the first five months of 2019, 45% of industrial leasing activity was e-commerce related. The rising demand is being driven by more retailers, wholesalers and third-party logistics (3PLs) devoting capital and labor to adapt their supply chains for faster delivery and to better compete for customers.

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Industrial demand from e-commerce related users over the last six years contributed to a surge in Transportation & Warehousing employment (T&W), which increased by 26% to 457,000 total T&W jobs. Three-fourths of these were in the occupation categories of laborers and freight, stock, and material movers; and packers and packagers accounting. As e-commerce further gains market share, additional T&W workers and warehouse space will be needed to fulfill this growth.

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