As retail struggles throughout the pandemic, there are many arguments for converting slumping shopping centers into new uses.
Big box retail hasn’t suffered as much as mom-and-pop stores, gyms and restaurants. Still, investors and developers are looking to warehouse conversions as a way to take advantage of the higher returns and strong rental growth of the logistics sector, according to Stuart Taylor, senior director of retail investments for JLL in a new post.
Despite leading economists’ forecast of a coming real estate slowdown, the demand for industrial space remains strong.
Competition is fierce as investors seek to capitalize on the growth of online retail and the resulting demand for “last mile” distribution centers, snapping up the dwindling supply of industrial properties, while others get creative with adaptive reuse projects.
However, industrial acquisitions, and distribution centers, present a specific set of challenges. Proper site selection and due diligence can go a long way towards protecting your investment.