A new special report from Prologis Research examines how COVID-19 has compressed the evolution of the retail landscape and what that trend could look like for the logistics industry.
The report, titled “Logistics Real Estate – Sizing the Retail Conversion Opportunity”, opens with “crisis precipitates change.”
Key takeaways include:
- Due to COVID-19, more than five years of evolution in retail has occurred in less than five months.
- Increased demand for high-quality and infill logistics real estate is on the rise, stemming from the accelerated adoption of e-commerce and just-in-case inventory.
- Because retail real estate challenges are more pronounced, owners of those properties have been prompted to explore opportunities to convert retail space for distribution uses.
- Opportunities for retail conversion vary widely by format.
- The retail-to-logistics conversion trend will take a long time to play out. Even when strategy and economics align, conversions won’t happen quickly.
