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Retail to Warehouse Conversion Opportunities and Challenges

Fulfilling customers’ needs by integrating industrial warehouse space into existing retail properties.

Photo Courtesy of Adobe Stock.

Delays within the supply chain have become more evident in the wake of the COVID-19 pandemic and have magnified the need to get goods to consumers quicker than ever. Solutions to this can include retailers utilizing their locations as fulfillment and pick-up centers or even moving their warehouses closer to customers. As businesses overhaul the supply chain, the demand for warehouse space is growing at a very quick rate.

Along with the impact of goods accessibility on retail real estate, there are other ideas to consider when converting retail stores to industrial use. Local government regulations and traffic as well as site selection of viable locations are just a few. Competition for properties that meet these criteria will increase as well.

While it is still unclear whether or not these new consumer behaviors are only pandemic driven, the need for this type of retail model continues to accelerate the changes in the near future for more automation and innovative ways to shop.

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Source: 2020 ICSC.

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