Posted on by Erron Smith
This time last year, there was growing concern that the economy was slowing down. But it appears, a year later, those concerns were not realized (thankfully). As we were recovering from the 2008 recession, one of my anecdotal barometers of the economic recovery was observing the increased volume of parcel delivery trucks on the roads. It signaled that consumers were feeling confident enough to spend money on goods that may not have been necessities of pent up demand.
I also use this period as a marker to identify the beginnings of an evolution in product and service delivery expectations. E-commerce retailers began to offer product delivery to consumers within a two to four-day time span; and the market responded favorably to that proposition.
E-commerce sales represented 51% of all retail sale growth in 2018 and represented a 14% share of total retail sales in the U.S. In 2017, e-commerce sales represented 13% of total retail sales, and 11.5% in 2016.
If this trend is to continue, and retailers are to satisfy consumer purchase orders within today’s gold standard of one to two business days, it requires the retailer have the local or regional capacity to fulfill the complete client experience. This growth in e-commerce is increasing the demand for adequate commercial properties that can satisfy such needs in a growing space. It is subsequently making transportation infrastructure and logistics a top consideration when identifying properties that can sufficiently serve the client base. Connecticut is geographically positioned to capitalize on this growth opportunity by offering the logistical solution for end-users with the market need to establish a regional presence in the northeast, that grants access to core markets while avoiding the core market costs.