NELSON Worldwide Announces Market Insight 2019: Industrial
NELSON's Kathy Craft shares insight into the urban shift of the industrial real estate and design market
MINNEAPOLIS, July 30, 2019 /PRNewswire/ -- NELSON Worldwide, a global architecture and design firm announced its 2019 insight for the industrial market which is witnessing a broad shift from previous generations.
NELSON's industrial practice is led by Kathy Craft who touts a 30-year history of award-winning design. NELSON's pioneering work for Prologis produced the first multistory warehouse space in the United States at Georgetown Crossroads in Seattle, notable for its three-story structure with truck access on two levels. The firm's innovative concept is expected to help meet increasing demand in the commercial real estate market for manufacturing, distribution and last-touch fulfillment space in dense, urban areas.
NELSON's robust network spans over 25 offices with a unifying vision that leverages insight across multiple business sectors including mixed-use, hospitality, workplace, retail, restaurants, entertainment, commercial multi-family, healthcare, and industrial.
The industrial segment is one of the country's largest growing real estate markets, proliferated by the burgeoning e-commerce business and speediness of product delivery. According to Deloitte, e-commerce growth will drive demand for an additional 850 million SF of industrial space over the next five years. This can be seen in Q1 alone, with the total industrial related construction in the U.S. topping 258.8 million SF with a total of 900 isolated properties currently under construction.
With today's consumers engaging with brands in a fluid manner, moving through experiences with no delineation in mind about format, location, or category, the traditional sectors of retail, restaurant, hospitality, and workplace have blurred, and their influence signifies a shift in function and utilization of massive areas of space. Warehouses once designated for singular functionality have become a mosaic of activities and engagement, a reflection of wavering consumer preferences and a desire to unify the experiences where consumers choose to work, shop, dine and play.
NELSON's industrial practice has produced over 80 million SF of space, with a Midwest hub in Minneapolis led by Deanne Erpelding and a Southeast hub in Atlanta and Alpharetta, led by David McGoldrick and Mark Schroeder. With the addition of a West Coast-based practice in Seattle, Ms. Craft is responsible for overseeing the development and growth of the industrial portfolio and lends her vision to the future of the market:
Last Mile Hybrid
Today's shoppers are looking for instant gratification, with 25% of consumers stating they will pay extra for same-day or instant delivery. Brands want to get product to the end-user faster than ever before. With warehouse properties scarce, the last mile hybrid has evolved, with big-box stores and dark anchors doubling as e-commerce fulfillment facilities.
Build Up, Not Out
The future of industrial development is vertical. The rise of e-commerce has resulted in strong demand for industrial facilities in urban areas. NELSON not only designed the first urban multi-story facility with dock loading on two-levels, but continues to look at the evolving footprint of industrial design.
Fewer Touches
The key to reducing the cost of supply chain operations is to reduce transportation costs, turn inventory and handle the product less from the time it is made or received from overseas and when it is delivered to the consumer.
Industrial Plus
With today's experience-driven society, industrial spaces are expanding to offer more consumer-facing offerings. From breweries with tap rooms, to grow houses with restaurants, industrial spaces are becoming environments that engage.
Expanding Back-of-House
As retail evolves to include more click-and-collect offerings, the focus has shifted from in-store experience to increasing the back-of-house footprint to more efficiently address this growing business model.
About NELSON Worldwide
NELSON is an award-winning firm delivering architecture, interior design, graphic design, and brand strategy services, providing our clients with strategic and creative solutions that positively impact their lives and the environments where they work, serve, play, and thrive. Our collective network includes more than 1,100 teammates in 25 offices. Clients include: Bank of America, Saks Fifth Avenue, Google, Hershey's, Kroger, Simon Property Group, Macy's, Westfield, SAP Fieldglass, HILTON, Target, T-Mobile, Dick's Sporting Goods, YUM! Brands, and more. Visit www.nelsonworldwide.com to learn more.
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SOURCE NELSON Worldwide
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