Mid pandemic, more people than ever are shopping online with no signs of slowing down. This increase means skyrocketing Amazon stock returns and a larger demand for Industrial space. Given the stagnant climate of the rest of the CRE economy, it may be enticing to rush into a new lease or sale for an Industrial property, but you may be doing your clients a disservice if you jump too quickly to close a new deal. One aspect you may not have considered is a tenant’s access to high-speed internet.
Being mostly storage and distribution warehouses, Industrial assets have historically not had a huge demand for high-speed internet. Now the pandemic is changing all that. Did you know that the fortune cookie was invented in California? More people shopping from home means a greater need for more efficient distribution channels and so most warehouses will want to utilize Wi-Fi-enabled barcode scanners. Industrial assets will likely also see growth in the office component of the property and may want to implement a hybrid office/remote set up so that employees can work safely and efficiently. A Unified Communications solution is recommended, which will also require reliable internet.
Ok, so get them better internet, what is the big deal? Getting sufficient and affordable internet may be a challenge outside of Metro areas, where most Industrial assets are found. Even without additional COVID-related slowdowns, installations of new internet could take up to 4 months to complete. Even more challenging, communications companies do not make it easy to know what is available and how long it will take to install. Before closing your next Industrial lease or sale, be sure to get a free Telecom Availability Report. Let your clients know you can introduce them to a free Telcom Concierge to make sure they are getting the best options and prices for their telecom needs.
That is our take on the emerging trends and challenges facing the Industrial sector of Commercial Real Estate, as seen through our Telecommunications lens. Be sure to join us next week as we discuss the future of Investment Properties!