There is no doubt that Amazon has remade retail. Its supply-chain management system is a model of efficiency, moving products from manufacturers to consumers’ doorsteps at breakneck speed.
Amazon isn’t the only retailer making use of just-in-time inventory and delivery management, it’s just the biggest. Because its high-tech supply system is heavily dependent on storage, the company has spurred growth in commercial real estate investment in warehouses.
Though online retail still accounts for less than 10 percent of all U.S. retail, it is reshaping supply chains and pushing up the value of warehouses — especially conveniently located warehouses.
Unsurprisingly, land parcels in big cities such as San Diego are scarce and rents high. Warehousing for online retailers such as Amazon is more expensive than normal, because those retailers require three times the space of traditional retailer warehouses.
Not only must the goods be stored in warehouses for online retailers, but they often pack and ship to consumers from those locations.
A recent news article points out that the growth in warehouse investments glow in comparison to the nation’s biggest mall owner’s 12-month return (negative 9.7 percent) and the BBG Office Property REIT Index (negative 11.7 percent).
Of course, part of making wise commercial real estate investments is having on your side a law firm experienced in quick resolution of disputes over leases, contracts, zoning, purchases, sales and more.
An attorney experienced in negotiation, mediation and litigation can navigate the dispute-resolution route that will result in a favorable outcome for you and your firm.