The E-Commerce Boom’s Continued Impact on Global Industrial Real Estate
- Mitt Chen
- Jun 5
- 3 min read
For years, e-commerce was seen as a convenient disruptor. Today, it’s an unstoppable economic juggernaut — reshaping how we shop and how we store, move, and deliver goods. That evolution has supercharged industrial real estate, turning it from a “boring backend” into one of the world’s hottest asset classes.
As someone who actively invests in SFR markets near fulfillment corridors, logistics hubs, and last-mile nodes, I’ve watched the industrial RE space evolve alongside e-commerce like a coiled spring — flexing under demand, supply chain strain, and technological shifts. Here’s a breakdown of the forces at play, where opportunities lie, and what the future holds for warehouses, fulfillment centers, and the global logistics grid.
🛒 E-Commerce Growth: Still Strong in 2025
The pandemic wasn’t a blip for e-commerce — it was a structural acceleration.
Global E-Commerce Sales reached $6.5 trillion in 2024 and are projected to grow at 9.4% annually, topping $8.1 trillion by 2026. 📎 GrowthDevil – Global E-Commerce Sales Growth
In markets like Southeast Asia, India, and Latin America, mobile usage, fintech access, and digital-native Gen Z consumers continue fueling growth.
🧠 Near Bogotá’s industrial belt — inbound capital from cross-border e-com players like MercadoLibre and Amazon sparked a 30% jump in logistics lease rates.
🏭 The Industrial Real Estate Ripple Effect
1️⃣ Fulfillment Center Expansion
Brands now need faster delivery, more regional hubs, and urban micro-warehouses to meet “same-day” expectations:
Build-to-suit facilities near ports and metros
Class A warehouse absorption in secondary U.S. markets
Big-box retail conversions into logistics space (think dead malls into Amazon hubs)
2️⃣ Last-Mile Warehousing
Urban warehouses are the new gold standard — Brooklyn, London outskirts, Paris suburbs.
🚢 Global Supply Chains Reshaping Asset Demand
Key Trends:
Nearshoring: Mexico, Eastern Europe, and Southeast Asia benefit as brands shift from China-centric supply chains.
Multimodal Hubs: Properties near rail, air, and ports are commanding premiums.
Cold Storage Growth: Online grocery and pharma are fueling a 100+% demand jump in cold chain logistics.
🧊 Cold storage is a niche I’m bullish on. In Phoenix and Madrid, cap rates are compressing faster than traditional industrial due to scarcity and tenant stickiness.
🏗️ Investment Trends and REIT Performance
Prologis (PLD) reported 95.8% occupancy and a 66.3% year-over-year rent growth in 2024. 📎 Prologis Investor Relations
Asia-Pacific Industrial REITs: Logistics-focused REITs in Japan and Singapore are surging, driven by e-commerce tenant demand. 📎 S&P Global – Asia-Pacific REIT Index
📉 Caution: Some U.S. submarkets (like Dallas and Atlanta) face short-term softness from speculative supply. My strategy? Focus on core-plus or value-add near constrained urban nodes.
🌍 Where the Next Opportunities Are
🔹 Frontier Growth: Indonesia, India, and Vietnam — young demographics + rising e-commerce = long runway. 🔹 ESG-Compliant Warehousing: LEED-certified, solar-equipped warehouses are enjoying rent premiums and better capex efficiency. 🔹 Automation-Ready Facilities: Warehouses built for robotics, AS/RS, and AI-driven inventory management command higher valuations.
🤖 My Singapore-based logistics partner calls these “Warehouses 3.0.” Think fewer forklifts, more drones scanning inventory.
🧠 Final Thoughts
Industrial real estate isn’t just cement and forklifts — it’s the infrastructure powering the digital economy.
The fusion of e-commerce, AI logistics, and supply chain realignment is what I see as a decade-long opportunity. Whether you’re an institutional allocator, a GP in the space, or a retail investor looking at REITs — industrial is the new core.
But remember: not all warehouses are created equal. Focus on location, tenant credit, cold chain access, and tech readiness. These are the new fundamentals in an increasingly digitized delivery world.
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