As more consumers shift their shopping habits online, the demand for industrial properties specifically warehouses and distribution centers has surged, explains Rainer Stenzhorn from In2assets property specialists.

These spaces play a critical role in assembling, storing, and efficiently dispatching products to customers. 

Bigger and More Modern Warehouses

Traditional retail spaces like shopping centres and strip malls are feeling the pinch and large-scale distribution centers and fulfillment centers are high in demand. 

E-commerce supply chain operations require warehouses that are not only bigger in terms of footprint but also taller. Height matters because it allows for efficient storage and retrieval of goods.

The demand for big box warehouses and distribution centres in South Africa is on the rise since 2019 when the covid 19 pandemic gave online retailers a significant push.  

E-commerce supply chains demand efficient logistics space that facilitates quick movement of goods. With major omnichannel retailers offering two-day or even one-day shipping, speed is of the essence.

Warehouses near major urban places like Cape Town, JHB-Kempton Park or the Durban Harbour with its link to Gauteng, the commercial powerhouse of South Africa, seen the most significant growth in industrial warehouse sizes. These locations serve as crucial hubs for getting products to consumers swiftly.

The Proximity to population centers and transportation networks is paramount. Warehouses need to be strategically located to minimize delivery times explains Stenzhorn further .

The rise of same-day and next-day delivery expectations means that warehouses must be close to where the action is—whether that’s a bustling city or a suburban area.

Modern industrial properties must be adaptable. They need to accommodate changing inventory needs, seasonal fluctuations, and evolving supply chain dynamics.

Sustainability is also gaining prominence. Developers and investors are increasingly focused on energy-efficient designs, renewable energy sources, and environmentally friendly practices.

As e-commerce continues to gobble up a larger share of the retail pie, traditional brick-and-mortar retail spaces face challenges.

In summary, e-commerce’s influence on industrial real estate is undeniable. These warehouses and distribution centers are the backbone of online shopping, ensuring that orders arrives at your doorstep promptly ends Stenzhorn his comments. 

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