This fireside chat recap is from Day 2 of FreightWaves’ Global Supply Chain Week. Day 2 focuses on retail, building and construction.
FIRESIDE CHAT TOPIC: Just-in-time versus just-in-case inventory management
DETAILS: We’ve all heard the saying that real estate is all about location, location, location, but is that the maxim for commercial real estate? Often access to labor and logistics are much more important than proximity to distribution centers and brick-and-mortar stores. Once you understand this, then the type of property becomes less important.
SPEAKER and INTERVIEWER: Kris Bjorson, executive brokerage director, JLL, and Kevin Hill, executive publisher, FreightWaves
BIO: Bjorson is responsible for the development and management of the retail/e-commerce distribution group and a member of the Global Industrial and Retail Boards for JLL. With a focus on maximizing business results for corporations, he also co-founded the Supply Chain & Logistics Solutions practice, which integrates supply chain strategy through industrial real estate implementation. His leadership skills and unparalleled knowledge of the real estate, logistics and retail industries continues to be a valuable asset in exceeding clients’ expectations. Over his 27-year career, Bjorson has completed more than $12 billion of industrial real estate transactions.
“E-commerce drives something like 30% to 50% of the demand for industrial real estate. COVID helped jump that trend three to five years.”
“B-to-B is just getting started in this last-mile world so they are looking at places that would be more traditional. We’re agnostic about what the solution might be. That solution might be a classic manufacturing building that we demo, it could be a vacated retail store, it could be a former single-story office. As all the other worlds are changing around the industrial real estate world, we’re taking advantage of what’s happening in those sectors and trying to make it viable last-mile real estate.”
“We believe there are 1 billion square feet of industrial deals coming in the next five years. They won’t all be done through industrial zoned locations. You’re going to have to be creative.”