FOOD SECTOR EXPANSION: Industrial spaces will soon be more than just distribution centres and manufacturing plants. Expansion will include: meal kits; direct-to-home grocery delivery; meal distribution at restaurants; ghost kitchens (delivery-only meals) and more.
Demand for warehouse space was high before the pandemic but accelerated when stores temporarily closed and e-commerce took off. According to Statistics Canada, retail e-commerce sales were up 110.7% year over year to $3.5 billion in January 2021. And something else happened.
Intermittently closings of storefront during the pandemic created the need for additional storage space and spaces to process orders for delivery. With few properties available, companies are now repurposing their current space or acquiring space (like closed stores) for distribution and fulfilment to hold or prepare goods. Other companies are making things work by acquiring secondary properties away from prime locations. Logistics and efficiency. Working together to meet new demands in industrial real estate.
