The business of real estate is struggling right now. The current state of our economy coupled with an ongoing pandemic and an evolution of the professional workplace has had a major impact. Supply shortages have delayed new construction while urban residents are seeking suburban bliss. Rates are at record lows but are expected to gradually climb. Inflation is on the rise as well. Basically, there are a lot of factors causing an unprecedented time for the housing market. But what about the other side of real estate… the industrial side? Well, industrial real estate is a different beast altogether and primed for success. We’re going to outline why that is and why you should be paying attention.
The e-commerce industry is on a long-term upward trend right now, with no signs of dipping anytime soon. More people are staying home than ever before, which leads to more online shopping for everything from clothes to groceries. With the demand for contactless online shopping rising, so too is the need for warehouses and facilities to support that industry. The supply chain that connects products to consumers is still not performing well, unfortunately. But this means that local businesses can benefit from the redirected demand. Every time you order something online, that purchase has to be fulfilled somewhere. Companies like Amazon and Gamestop are making news as they purchase more warehouses and fulfillment centers. E-commerce revenue was up 48% from 2019 to 2021 and is forecasted to almost double during the next 4 years.
Weed and Crypto
And it’s not just traditional retailers who are snatching up valuable warehouses, distribution centers, and manufacturing facilities. The cannabis industry is booming, as it’s become a high-growth business everywhere it’s being legalized. But marijuana needs somewhere to grow – preferably in a large, indoor, controlled environment. As legalized cannabis creates more multi-million dollar companies, more need for industrial property arises. As marijuana farms expand, so too does their need for more facilities. Industrial real estate benefits from this as long as it can keep up with construction and leasing availability. It truly is a green business in every sense of the word.
The largest REIT(Real Estate Investment Trust) Prologis, recently reported a nationwide vacancy rate of just 3.9% for industrial properties. This means that supply is low in the midst of growing demand.
We’d be remiss if we didn’t mention that other thing you’ve been hearing about everywhere; cryptocurrency. With the world of digital currency like crypto being so new and complex, it’s easy to not realize how much physical space is actually needed for something that’s digital. There are companies that specialize in crypto mining, which much like cannabis, requires a lot of space in a controlled environment. Massive rooms are full of servers with constant air conditioning, mining for crypto coins around the clock. And as this industry becomes increasingly lucrative, early innovators have more money than they know what to do with. So they’re buying up warehouses to expand their operations and make even more money. It sounds like some sci-fi fantasy from the future, but it’s very much real and present. Long story short; industrial real estate is in a good place with a bright future. It won’t be hit as hard as residential real estate, because industrial properties are often purchased by seasoned businesses with deep pockets.
The Virtual Assistant Factor
But why does MyOutDesk care? Because there are a lot of roles in this equation that our virtual assistants fit perfectly. We have such a wide pool of talented and educated professionals, spanning all kinds of industry experience. From real estate and e-commerce to marketing and customer service; the list goes on. Companies trying to grow efficiently or already scaling up come to us for cost-effective help. From important high-level priorities to entry-level busy-work. If you need it done, we have people who can do it. Supporting the industrial real state business, and thus supporting our economy during unprecedented times, is an honor for us. So if you’re at all curious how we can help you grow, at up to 70% savings from traditional local hires, use the link below. You can request a consultation with one of our experts, who will hear you out and then explain how this works. We’re confident we can help you achieve your goals at a fraction of the usual cost, with 1 or more of our reliable virtual assistants.
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