SECTOR COMMERCIAL & INDUSTRIAL
Where are we headed? Because we’re getting there fast
Christine Miller Head of Supply Chain Advisory, CBRE
Among the biggest changes and drivers of new activity in the property sector include:
The past few months have had an impact on everyone in some way and, while each of us has dealt differently with the challenges the COVID-19 pandemic has brought, there are some shared outcomes that have emerged.
• Fuelled by increased online shopping, eCommerce volume has grown in just a few weeks to levels predicted to be reached only in five years • The roles of Industrial & Logistics and Retail sectors of the property market have had to align to respond to the rapidly changing market demands • Delivery, and especially Last Mile landscapes, have shifted to new delivery patterns and changed centres of gravity. These dynamics have highlighted the importance and key role supply chain plays in every organisation, regardless
of industry. Now, more than ever, we are aware of the importance of property in enabling the supply chain to perform at the levels required to respond to sudden and unexpected market changes – as well as flex and adapt to rapid changes in supply and demand profiles. The US has recorded the equivalent of a decades’ growth in online sales in just eight weeks. Australia and New Zealand are coming from slightly lower penetration rates, so our levels are equivalent to around five years’ online sales growth. This transformation is extraordinary, especially considering how supply chains have needed to respond in a very complex environment.
U.S. ECOMMERCE PENETRATION (% OF RETAIL SALES)
30% 27.0% 25%
20%
15%
13.2%
10% 6.4%
7.2%
8.0%
8.8%
10.7%
9.7%
11.8%
14.4%
5%
10 YEARS
8 WEEKS
SOURCE DATA: BANK OF AMERICA, US DEPARTMENT OF COMMERCE, SHAW SPRING RESEARCH
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The Real Estate Institute of New Zealand
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