Demand from e-commerce, logistics and parcel delivery firms expected to surge over next two years
Orlando, FL – May 26, 2015 – (RealEstateRama) — Central Florida real estate occupied by e-commerce retailers, parcel delivery firms, and transportation/logistics companies hit an all-time high in 2014, according to a new report by CBRE Group, Inc., and demand from those users is projected to surge over the next three years.
The report, “The Emergence of a Regional Logistics Hub,” describes the factors that are attracting e-commerce retailers, and the companies that support them, to Central Florida – factors including strong population growth, a sophisticated transportation and logistics infrastructure, and an abundance of well-located, affordable industrial space. A large e-commerce company’s decision to open two large distribution centers in Central Florida in 2014 also had a “demonstration effect,” drawing attention, and new companies, to the region.
According to the report, e-commerce retailers are expected to occupy an additional 3.4 million square feet of industrial space in Central Florida over the next three years. Parcel delivery firms are expected to occupy an additional 800,000 square feet of space, while transportation and logistics companies could occupy as much as 860,000 of additional space between 2015 and the end of 2017.
“Central Florida is in many ways a logical location for a regional logistic hub, as it lies in the geographic center of one of the most populous states,” said Quinn Eddins, Director of Research and Analysis, CBRE Florida. “By locating here, e-commerce retailers are giving themselves the capacity to service 18.4 million consumers with same-day or next-day delivery, which is a standard toward which many retailers are moving.”
Other attributes that position Central Florida positively as major logistics hub, according to the report:
More than 44 million square feet of industrial space is proposed for development in Hillsborough and Polk Counties.
A new intermodal terminal in Winter Haven, Florida connects the state to markets including Chicago, New York, Memphis and Atlanta, and major southeastern ports.
Florida ranks fourth among U.S. states in terms of growth in personal consumption expenditures,
Florida added roughly 713 new residents per day between 2010 and 2014, and more than 100 million tourists are expected to visit the state in 2015.
For more details from the report, visit www.cbre.com/en/research.
About CBRE Group, Inc.
CBRE Group, Inc. (NYSE:CBG), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services and investment firm (in terms of 2014 revenue). The Company has more than 52,000 employees (excluding affiliates), and serves real estate owners, investors and occupiers through more than 370 offices (excluding affiliates) worldwide. CBRE offers strategic advice and execution for property sales and leasing; corporate services; property, facilities and project management; mortgage banking; appraisal and valuation; development services; investment management; and research and consulting. Please visit our website at www.cbre.com.