Death of the Shopping Mall? E-Commerce Disrupts Retail Real Estate

As physical retail spaces like shopping malls lose relevance, they are often replaced by warehouses and distribution centers that support the growing e-commerce model. This trend is causing disruption – and creating opportunities – within the real estate sector.

Key Takeaways

  • Online retail sales have grown exponentially in recent years, putting pressure on the physical retail real estate sector, and we expect this trend to continue.
  • We believe we are in the early phase of a transition that could generate increased demand for industrial logistics real estate (i.e., warehouses). In 10 to 15 years, we expect warehouse space could represent a larger market cap than retail real estate.
  • As this transition unfolds, we think it is important to be selective in identifying those companies that are able to adapt their offering and continue to thrive.

ABANDON YOUR DOUBTS,

NOT YOUR GOALS