Why Industrial Real Estate Is Flourishing This Year

September 29, 2017

The industrial real estate world has never seen a more lucrative period. In just the first quarter of 2017, industrial property sales grew by 3%, which is about a $13.9 billion-dollar increase. With numbers this astounding, it is obvious that the industrial real estate world deserves the attention it is getting. At NAI Isaac, of Lexington, Kentucky, we want to show you why industrial real estate is flourishing this year.

Online Businesses

The main reason that industrial real estate is flourishing this year is the unprecedented growth of web-based companies and the shift to online shopping. More so than ever before, online retailers and distributors are expanding their businesses and more and more online businesses are opening. Because these businesses need somewhere to store and house their items, industrial real estate is in high demand. Many of these newer companies start out by renting smaller warehouses as startup businesses, and when their business expands they rent more industrial spaces in other areas or look for larger spaces to rent. In addition, businesses that were traditionally “brick-and-mortar retailers” are also moving towards online sales. Because of this shift, these businesses, which used to ship from store to store or from store to customer, are in need of distribution spaces to ship products directly to customers from their distribution centers rather than having all of their inventory in stores.

Shipping Times

Many companies are drawing in customers by offering free same-day, next-day, and two-day shipping. For this to be a plausible business plan, companies require warehouses that are fully stocked with product in many different areas of the country. Rather than having one main distribution warehouse, companies are now choosing to operate out of multiple smaller locations that make shipping and delivery options easier and more accessible to customers.

Inventory Storage

Going along with quicker shipping times and the move towards online commerce, companies are looking for industrial spaces to help with storing their products in a more affordable way. Rather than buying expansive buildings, many online companies are choosing industrial spaces with smaller square footage but with taller ceilings. Rather than spreading their products out over large areas, companies are choosing to store their products vertically to save money.

Online businesses will continue to grow and here at NAI Isaac, we want to help you make the most of these real estate trends. At NAI Isaac, located in Lexington, Kentucky, we pride ourselves on our knowledge and experience in the commercial and industrial real estate world. In addition to our outstanding customer satisfaction, NAI Isaac specializes in many real fields like acquisition and dispositionindustrial servicesproperty marketing, and various other areas. If you are ready to get involved in the flourishing industrial real estate world, NAI Isaac is who you need to call.

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771 Corporate Drive Suite 500
Lexington, Kentucky 40503
United States


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