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The Korte Company’s Big Box Round-Up: E-Commerce Keeps Boom Going

Español | Translation Sponsored by TCA

By: Todd Imming

The record-breaking warehousing boom continues as companies increase just-in-case inventories to compensate for the ever-increasing demand for timely e-commerce delivery services, as reported by Modern Materials Handling. In just one year, developers experienced a half-decade’s worth of e-commerce growth. At this rate, more than 500 million square feet of additional warehouse and distribution space could be generated in the next two to three years, said Carter Andrus, president of Central Region at real estate investment trust company Prologis.

So, the already booming industry isn’t likely to slow any time soon. The Korte Company is ready to help create some of that square footage. We recently teamed with Glik’s to design and construct a new 50,000-square-foot office headquarters, distribution and e-commerce facility in Collinsville, Illinois.

Approximately $1 billion in incremental e-commerce sales generates demand for 1.25 million square feet of warehousing, according to CBRE Research. Real estate constraints have hindered new infill warehouse space at the center of cities where there is a high demand for delivery services. So, if the increase in online shopping holds out, more retail spaces will be converted to warehousing.

Global cold storage construction is projected to reach a market size of $18.59 billion by 2027, spurred by the rapid growth of online grocery sales, according to Emergen Research. Case in point – The Korte Company is currently constructing an 819,200-square-foot design-build food-grade facility for The Hershey Company. The escalating demand in the industry is supported by the increasing adoption of advanced technologies like energy-efficient walls, cascade refrigeration systems, high-speed doors and automated cranes.

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TILT-UP TODAY, a publication of the Tilt-Up Concrete Association, is THE source for Tilt-Up industry news, market intelligence, business strategies, technical solutions, product information, and other resources for professionals in the Tilt-Up industry. A subscription to TILT-UP TODAY is included in a TCA membership. Subscriptions for potential TCA members are also available. If you would like to receive a complimentary subscription to the publication, please contact the TCA.