This is part three of our four-part series exploring how Commercial Business environments are shifting in 2020 and what the Commercial Real Estate community can do to remain vital to their clients. If you tuned in last week, we focused on The Future of Retail Space. Today, we shift our focus to the booming Industrial sector, which faces its own unique challenges in the wake of recent growth spurts.
The Future of CRE: Industrial
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!
Find out more about partnering with Tenant Telecom Advisors.
Please fill out this form to speak to one of our telecom experts. We can help find available fiber in your building to make your listings more marketable. Furthermore, you can request a free Telecom Availability Report for any listing.
If you’re not already offering telecommunications concierge services, you may be losing deals without even knowing. Tenants need to know everything in advance of signing a lease. Without it, they may choose another space to lease where they can find out. Our business is to support, so your business can thrive.