Warehouse business catches fire, boosted by pandemic, e-commerce

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The rise of e-commerce and the logistical nightmare created by the COVID-19 pandemic have caused a surge in demand for warehouse space in the US.

Prices for warehouse space has surged, but commercial real estate executives warn they won't keep going up.WASHINGTON - The rise of e-commerce and the logistical nightmare created by the COVID-19 pandemic have caused a surge in demand for warehouse space in the United States, and big investment funds have taken note.

Demand is so strong that purchase prices have tripled or quadrupled in just six years in northern New Jersey. In addition, unlike traditional storage sites, fulfilling online orders requires technologically advanced warehouses, said Mark Manduca, chief investment officer at GXO, a supply chain management company.

 

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