E-commerce to boom and Australian home will follow

by Australia’s e-commerce sectoris at an eight-year lag to the US,” according to Colliers International Associate Director, Research, Sass J-Baleh.

Ms J-Baleh computed the lag by comparing the share of online retail sales to overall retail sales and in Australia last year that figure was only about 4.3 percent, similar to the level achieved in the US in 2009.

The rate of development is much greater. Over 2002 to 2007, the United States tape-recorded an average yearly development rate of retail e-commerce sales of about 24 per cent, while Australia is currently experiencing an annual development rate in online retail sales of about 29 percent over the past 4 years.

“Applying the exact same annual growth rate in the share of US online retail sales in between 2009 and 2017, to Australia, results in Australia’s online share increasing to 9.9 percent (or $37.8 billion in overall online retail sales) by 2025,” Ms J-Baleh said.Linking this back to require for industrial flooring area– the level of overall floor area in home lease offers that happened in 2017 attributable to the e-commerce sector was around 150,000 square metres, compared with around 50,000 square metres in 2013. That is a threefold increase. Colliers International’s handling director for commercial, Malcom Tyson, said that while the demand would eventually plateau, due the level of performance within such new e-commerce-related storage facilities, the awaited need would be substantial and property owners should be readying themselves.”While e-commerce development does not equate into a one-for-one increase in commercial space, it will certainly be a contributing aspect in pressing demand in Australia and place greater emphasis on supply chain efficiency and efficiency in the Australian market,” Mr Tyson said.Globally the trend is clear.Aberdeen Requirement Investments’international co-head of property, Pertti Vanhanen, informed The Australian Financial Evaluation last month that logistics residential or commercial property was”buy”.”Before e-commerce, people comprehended logistics as a dusty old storage facility. Now, after Amazon, it’s a really contemporary, state-of-the-art sector. It is growing and bigger

in Europe, “he stated.”We just recently bought a brand-new storage facility near Charles de Gaulle airport in Paris. The renter is invested more into the systems that go into the storage facility than the expense of it

. It’s essentially all dark with robotics– it’s much easier for a computer system to read upc code in the dark.”

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