Prior to the recent NAIOP conference in Toronto, Bisnow interviewed KC Conway, CRE, on developments in the Industrial sector ( see: What An Eastern-Shifting Supply Chain Means For North American Seaports And Industrial Real Estate)

In that discussion, Conway points to the relationship between retailers and the industrial sector:

“The power of industrial investment increasingly rests with retailers, which can affect the success of a port more than geographic location. By investing in logistics services, they can control everything from arrival at the port to delivery at the consumer’s doorstep. ‘The retailers are building their own supply chain,’ KC Conway (SunTrust) said. ‘They are owning it in order to guarantee fulfillment and delivery. They want to own the warehouse, the proprietary technology in the warehouse and the conveyor belt. They see that their future is the supply chain and it is e-commerce fulfillment. It is not the front retail store.’ ”

WHAT DO YOU THINK? Given the broad shifts in retailing that are underway, especially in the transition from brick-and-mortar platforms to e-commerce, is there a significant ripple effect underway in the industrial sector? How is industrial real estate being re-shaped? Is this a significant trend in the real estate?

Members, please reply to info@cre.org to let us know your thoughts.