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California  + Industrial  | 

Reverse Logistics Drives Industrial Expansion

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The growing trend of e-commerce significantly influencing the industrial market is not expected to abate. Online sales are expected to increase 72% by 2020, and that will also fuel the growth of reverse logistics.

New research by CBRE reveals that managing unavoidable product returns is a ‘must have’ need that savvy e-retailers now recognize can drive customer retention and sales.

CBRE’s Petra Durnin says, “The current brick and mortar to e-commerce ratio will shift; brick and mortar locations will shrink and e-commerce distribution locations will increase, allowing smaller distribution facilities in markets that previously couldn’t accommodate them.”

  • Return policies strongly influence a customer’s decision to shop with an e-retailer again, thus e-retailers adopt more return-friendly policies that benefit customers
  • Top product return categories are clothing (27%), computer software (20%) and books (15%), due to easy re-packaging and being mail-friendly
  • Growth of returns is expected to create opportunities for SoCal industrial CRE market
  • Logistics footprints will expand to handle returns
  • Outsourcing sales and returns to 3PLs will drive occupancy gains
  • So far in 2016, 3PL users accounted for more than 11.3 million square feet of leasing activity in SoCal, roughly 17% of the total leasing activity

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For comments, questions or concerns, please contact Dennis Kaiser

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Inside The Story

Read More at CBRE ResearchConnect with CBRE's Durnin

About Dennis Kaiser

Dennis Kaiser is Vice President of Public Relations and Communications for Connect Creative. Dennis is a communications leader with more than 40 years of experience including as a journalist and in corporate and agency marketing communications roles. He is responsible for Connect Creative’s agency client services and is involved in a range of initiatives ranging from public relations and content strategy, communications and message development, copywriting, media relations, social media and content marketing services. Prior to joining Connect Media in 2015, his most recent corporate communications roles involved leading a regional public relations effort across Southern California for CBRE, playing a key marketing role on JLL’s national retail team, and directing the global public relations effort at ValleyCrest (BrightView), the nation’s largest commercial landscape services company. He has worked on marketing communications assignments for such CRE companies as Blackstone/Equity Office, Carlyle, Caruso, Disney Resorts, GE Capital, Irvine Company, Hines, Howard Hughes Corp., Jeffries, Lennar, MGM, Marcus & Millichap, Prologis, Raleigh Studios, Simon, Starwood, Trammell Crow Company, Transamerica, UBS and Wynn Resorts. Dennis has also worked on communications and launch strategies for a number of consumer electronic, media and tech brands including SlingMedia, Channel Master, Deluxe Media Entertainment, BeIn Sports, EchoStar and Sprint. Dennis’s agency background included firms such as Off Madison Ave., Idea Hall and Macy + Associates. He has earned an outstanding reputation with organization leaders as a trusted advisor, strategic program implementer, consensus builder and exceptional collaborator. Dennis has developed and managed national communications programs for Fortune 500 companies to start-ups, both public and private. He’s successfully worked with journalists across the globe representing clients involved in major-breaking news stories, product launches, media tours, and company news announcements. Dennis has been involved in a host of charitable and community organizations including the American Cancer Society, Easter Seals, Boy Scouts, Chrysalis Foundation, Freedom For Life, HOLA, L.A.’s BEST, Reach Out and Read, Super Bowl Host Committee, and the Thunderbirds Charities.

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