June 9, 2022

The NAIOP Research Foundation has released a new research report: "New Places and New Spaces for E-commerce Distribution: Three Strategies Bringing Industrial and Retail Real Estate Closer Together," authored by Dustin C. Read, Ph.D., J.D., Incoming Professor and Director of the Master of Real Estate Development Program, Clemson University.

The NAIOP Research Foundation commissioned this report to examine three trends: the conversion of shopping centers to distribution centers, adding distribution uses to existing retail buildings, and the development of mixed-use properties that include both distribution and retail. The author conducted secondary research and interviewed developers, investors, architects, analysts and other commercial real estate professionals to identify the opportunities and risks associated with each strategy.

• Functionally obsolete shopping centers can be attractive targets for conversion to distribution space given their size and location.
• Retailers are adding distribution capacity and online order pickup and return services to existing retail stores to enhance their customers’ shopping experience.
• Some developers are pioneering mixed-use developments that colocate retail and industrial space.