Industrial REIT CEO: E-Tailers Building New Supply Chains, Driving Industrial Property Value
The rise of e-commerce is displacing some traditional retail demand, but it’s also creating new demand on the industrial and warehouse side.
E-commerce has spurred the growth of third party logistics facilities, also known as 3PLs. The facilities handle the order fulfillment behind the explosive growth of US online retail, expected to grow to $279 billion by 2015. These enormous warehouses and shipping centers are drivers of jobs and new construction and enablers of a massive and growing trend.
All that adds up to a big investment opportunity, according to Hamid Moghadam, CEO of industrial REIT Prologis. US warehouse properties figure into his investment trust very heavily, and he stopped by CNBC to discuss the new opportunities in the US industrial property market.