Warehouse conversions are far from a distressed retail silver bullet
Many questions have been presented to the commercial real estate community in recent months. How to keep occupiers safe, where to invest in a post-Covid-19 world, and how to know which tenants might default are all important considerations that many are wrestling with. But one of the most impactful decisions, for both a real estate portfolio and our actual communities, is what to do with the glut of shattered, shuttered retail space left sitting empty on street corners and in malls the country over.

America has long been over-supplied with retail space. As the Lincoln Institute think tank points out, the U.S. has 24.5 square feet of retail property per capita, compared to the European average of just 4.5 square feet per capita. Such a glut of supply makes the American market much more rapidly impacted by disruptions like the Covid-19 pandemic. This bears out in the numbers of American businesses closed due to the outbreak: over 160,000 at the end of August, according to data from Yelp....


RSK: I have been a proponent of this adaptive use for some time. But warehousing may not be the highest and best use of a location even if it is feasible. Good article.

Ken Notes: The online industry needs more than warehouse, they need final destination for larger items with the consumer either picking up the item or arranging delivery to their front door. Imagine Amazon wanting to compete with IKEA, Menards, and Bergstrom. For the record they do...Don`t believe me check this out https://www.amazon.com/Vehicles/...

- - Volume: 8 - WEEK: 46 Date: 11/10/2020 8:17:04 AM -