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E-Commerce Creates Thrice as Much Demand for Warehouses, ULI Panel Says

by Realty News ReportOctober 7, 2015
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SAN FRANCISCO – The sale of goods via the Internet is having a profound impact on the industrial real estate markets because e-commerce creates a greater need for warehouses, says Hamid Moghadam, chairman of Prologis Inc., one of the world’s largest warehouse companies.

E-commerce sales require three times as much warehouse space as sales completed in regular brick-and-mortar stores, said Moghadam.

Moghadam made the comments at the Urban Land Institute’s Fall Meeting at the Moscone Center in San Francisco.

Amazon is building fulfillment center warehousing across the country, and other retailers are influenced by this trend.

Moghadam was one of the speakers at the ULI media lunch “Technology and Real Estate: Big Changes, Big Impact” Wednesday.

Other speakers included. Global Chairman Randall Rowe, ULI Global CEO Patrick Phillips, BMW I-Ventures Senior Advisor Mark Platshon and PivotDesk Cofounder and CEO David Mandell.

 

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