36.4 F
Fort Worth
Saturday, December 5, 2020
Real Estate Commerical Real Deals: Retail, Cold Storage

Real Deals: Retail, Cold Storage

Other News

Granger reelected as lead Republican on the House Appropriations Committee

U.S. Rep. Kay Granger, R-Fort Worth, has been reelected by members of the House Republican Steering Committee to serve as Lead Republican of the...

Iconic Fort Worth retail/office center to be represented by Vision

Vision Commercial Real Estate will now be representing one of Fort Worth’s iconic and historic retail/office locations, the Ridglea Village retail center at 6100 & 6040...

Optimism growing for COVID relief bill as pressure builds

By ANDREW TAYLOR Associated Press WASHINGTON (AP) — Optimism about delivering long-sought COVID-19 relief is building on Capitol Hill after additional rank-and-file lawmakers voiced support...

Legendary 6666 Ranch goes on the market for $192.2M

The legendary 6666 Ranch (pronounced Four Sixes) is up for sale. Lubbock-based land brokerage and appraisal firm Chas S. Middleton and Son has listed the...

RETAIL REPORT

CBRE has released the Dallas-Fort Worth Q1 Retail MarketView which saw leasing velocity take a dip reflecting the impact of the pandemic.  

DFW Q1 Retail Highlights

– After several quarters of strong leasing activity, DFW finally saw leasing velocity start to fall this quarter. In total, DFW saw 166,425 square feet of positive absorption this quarter, with smaller leases of 15,000 square feet and below driving positive absorption. Occupancy fell slightly to 94.2% as deliveries outpaced absorption with only 42% of new retail product leased at the end of the quarter.

– Small businesses are among the retailers most affected by the rapid spread of COVID-19. Nearly half of the private workforce in Texas is employed by a small business. Since the outbreak of coronavirus in the U.S. at the beginning of March, small businesses have seen revenue decline 15% to 80% and are coming to terms with how they will make ends meet in the months ahead.

– Assuming the coronavirus peaks this summer in the U.S. mirroring China’s experience, the U.S. government’s fiscal and monetary stimulus will begin to bear fruit. This will be paired with pent-up private demand that could help the U.S. economy return to growth by year-end and drive stronger than previously expected growth in 2021.

COLD STORAGE

The COVID-19 pandemic is creating massive disruption in the food industry, which will result in increased demand for industrial cold storage space in the U.S., according to a new CBRE report.

 As many consumers shelter in place, online grocery sales have increased dramatically.

CBRE Research explored the relationship between e-commerce grocery growth and cold storage warehouse capacity in its Food on Demand Series: Cold Storage Logistics Unpacked, suggesting that an additional 75 to 100 million square feet of industrial freezer/cooler space will be needed to meet the demand generated by online grocery sales in the next five years.

The COVID-19 pandemic will likely accelerate this need for space, creating five long-term impacts for the cold-storage sector.

Some notes from the report:

– E-commerce grocery will become more widely adopted as consumer comfort grows with the practice. This will trigger the aforementioned heightened demand for cold storage capacity.

Public refrigerated warehouse companies will likely consolidate to gain more control of the cold storage footprint.

– Since e-commerce is typically fulfilled by local grocery stores, retail footprints will include more storage and fulfillment space, including a greater need for infill temperature-controlled facilities in proximity to consumers.

– Restaurants may see a significant shift in dining formats with less dine-in options and more delivery or take-out that would require cold storage capacity. Foodservice companies that supply restaurants may look to second-generation cold storage space as a cost advantage in a limited dining environment.

– Automation will increase, prompting higher-density, greater-height and smaller-footprint buildouts that will be required for around-the-clock operations.

“Until recently, consumers were not ordering a lot of perishables online, but that will likely change in a post-COVID-19 environment,” said Matthew Walaszek, associate director of Industrial and Logistics research for CBRE. “Now, we are seeing consumers trend toward buying foods online such as frozen meats and poultry. To meet this new demand, we will need more temperature-controlled space.”

close

Oh hi there 👋 It’s nice to meet you.

Sign up to receive awesome content in your inbox.

We don’t spam! Read our privacy policy for more info.

close

Oh hi there 👋
It’s nice to meet you.

Sign up to receive awesome content in your inbox.

We don’t spam! Read our privacy policy for more info.

Latest News

Iconic Fort Worth retail/office center to be represented by Vision

Vision Commercial Real Estate will now be representing one of Fort Worth’s iconic and historic retail/office locations, the Ridglea Village retail center at 6100 & 6040...

Legendary 6666 Ranch goes on the market for $192.2M

The legendary 6666 Ranch (pronounced Four Sixes) is up for sale. Lubbock-based land brokerage and appraisal firm Chas S. Middleton and Son has listed the...

Dallas park to get $10M iconic fountain

Dallas’ Klyde Warren Park announced a $10 million gift will fund construction on a next-generation, interactive “super fountain.” The fountain is funded by a $10...

Robert Francis: Picturing City Hall

You can’t fight City Hall goes the old saying, but you can replace it. Fort Worth officials on Dec. 2 announced plans to purchase the...

Sundt Construction promotes four

Sundt Construction Inc. promoted four employee-owners in its Dallas office: Holly Horsak  to senior project manager, Amber Simonson  to project manager II, Maria Luna to...