The Rise of Ecommerce Changing the Face of Retail

By Gary Tasman COVID-19 has changed the way we all look at retail, both online and traditional brick-and-mortar. As a result, warehouse and retail spaces are in demand as we transition into new ways of doing business. If you have retail or industrial real estate, buyers may be searching for your property right now. In fact, it’s the perfect time to sell for many commercial property owners in our region. For the last decade, we’ve watched online sales slowly climb as a part of overall retail, and recent COVID-19 safe-at-home orders have accelerated this trend. More people are shopping online than ever before. The market research company eMarketer predicts e-commerce will be responsible for about 14.5% percent of total retail sales, or $710 billion, this year. That trend only figures to climb over the next four years, making up 18% of all retail sales by the middle of the decade. Ready to make a move?  Get started by contacting us. This trend has created the need for many companies to expand their production, storage, and distribution capabilities and facilities. Because of the coronavirus pandemic, e-commerce leasing activity is exploding. Prior to the COVID-19 crisis, about 35% of industrial leasing activity was related to e-commerce, said Shawn Stoneburner of Cushman & Wakefield Commercial Property of Southwest Florida. Stoneburner says the first quarter of this year was one of the strongest leasing quarters in three years nationwide. Cushman & Wakefield Commercial Property Southwest Florida and its access to strong local and national resources are in the perfect position to fill any retail or fulfillment space demand from a vast inventory throughout the region, especially for those tied into the e-commerce boom. With more people staying home and shopping online, projections are that an additional 1 billion square feet of industrial and warehouse space could be needed by 2025. Traditional retail is also back on the rise too, as the nation and Southwest Florida gradually reopen. Despite headlines about closures at national retailers like JC Penney and Neiman Marcus, many brick-and-mortar retailers are seeing an uptick in business, and are on the hunt for new and better commercial space that better meets the “new normal” needs of the consumer. According to data released recently by the US Census Bureau, retail sales, including food services, jumped 7.5% in June after climbing a dramatic 18.2% in May, buoyed by the country reopening its economy. Although record declines were the story in March and April, the June rebound actually surpassed retail sales from June of 2019. Retail categories experiencing positive market changes are sporting goods, hobby, book and music stores, food and beverage stores, building materials, garden equipment and supply dealers, automotive parts and tire stores. Lee County has existing space available that can be converted quickly to meet the needs created by COVID-19. If you own a commercial property, now is the perfect time to sell, as there are qualified buyers ready to make a move. The experts at Cushman & Wakefield Commercial Property Southwest Florida are your go-to team for commercial property needs. We are equipped with the passion, knowledge, creativity, data and inventory to help businesses find the commercial properties they need to become better because of the pandemic. The team at Cushman & Wakefield Commercial Property Southwest Florida wants to speak with you, show you our inventory and develop a plan that best fits your needs. Reach us at 239-829-5400 or email timetosell@cpswfl.com.

Certain phrases surrounding the COVID-19 pandemic have sparked global conversations, the most notable being social distancing – the entire world now understands the importance of staying six feet away. Across the globe, we’re in different stages of experiencing the pandemic. But, as we begin visualizing life after COVID-19, we must begin to think about what a six feet society will look like and how we will adjust. “The 6 feet rule” isn’t going away any time soon and we at Cushman & Wakefield understand how critical it is to normalize this guideline into everyday life. Eventually, we will all return to work, but we must not forget this golden rule. Introducing the 6 Feet Office The 6 Feet Office is our conceptual idea to help our clients prepare for their employees to return to the office. We’re here to help you prepare for the return to the office. We’re here to help you maintain social distancing while creating an effective workplace. We’re here to help you embrace the new normal. Learn more about the Six Feet Office at https://www.cushmanwakefield.com/en/netherlands/six-feet-office.

The new normal will be a total workplace ecosystem Through our proprietary Experience per Square FootTM (XSF) tool, Cushman & Wakefield has captured more than 2.5 million data points from workers all over the globe in the pre-COVID-19 era and a further 1.7 million data points from more than 50,000 respondents in the current work from home environment. Our workplace specialists analyzed this data to develop a report on the future of workplace, which gives you an inside look at the unrivaled insights into how employees are coping right now – identifying their key successes and critical challenge. With this data, Cushman & Wakefield has developed a report that provides insight into the future workplace. Read more about The Future of Workplace at https://www.cushmanwakefield.com/en/insights/covid-19/the-future-of-workplace.

The Safe Six Checklist

Creating new business and commercial space opportunities By Gary Tasman The pandemic is creating a wish list of opportunities for commercial space to fit the needs of a constantly changing work environment. A growing market for warehouse space, distribution centers and manufacturing facilities are the result of COVID-19 as businesses adapt to the changes. Supply chains have been disrupted, but there are a multitude of opportunities magnified by the pandemic where suppliers, manufactures and distributors can move quickly, confidently and productively. Our team of experts at Cushman & Wakefield Commercial Property Southwest Florida is equipped with the passion, knowledge, creativity, data and inventory to help businesses find the commercial properties they need to become better because of the pandemic. Ready to make a move?  Get started by contacting us. Lee County has existing space available that can be converted quickly to meet the needs created by COVID-19. Because of shelter in place orders and social distancing, customers have challenged companies to step up their digital capabilities for online buying, creating the need for distribution centers that can move items quickly and efficiently. Manufacturers need space for equipment and technology to make COVID-19 related products like masks, face shields and ventilators. The use of robotics to help eliminate human contact and the space to house the technology is on the rise. The need for cold storage also is growing. Another industry challenge is long transit times from distribution points to the customer. Avoiding those time-consuming disruptions with more distribution centers strategically placed to move products more efficiently is a current industry conversation and movement. Cushman & Wakefield Commercial Property Southwest Florida is part of that conversation and can find the necessary space. The pandemic is a unique, moment-in-time event challenging supply chain innovators and operators to survey the landscape and learn from companies, partners and other industries. Cushman & Wakefield Commercial Property Southwest Florida and its team will help companies navigate the paths ahead, mining data and inventory to find workable space solutions. To connect with Southwest Florida’s leading commercial property experts, Gary Tasman and Shawn Stoneburner of Cushman & Wakefield | Commercial Property Southwest Florida, call 239-829-5400 or email timetosell@cpswfl.com.

Global Data Center Advisory Group

Moving forward after a pandemic By Gary Tasman We know the world is vastly different as social distancing, limited travel and fear over increased cases of COVID-19, impact our daily lives. As people try to adjust to the new normal and navigate through the pandemic, Cushman & Wakefield | Commercial Property Southwest Florida continues to emerge as an industry leader providing enhanced digital connections and solutions to keep commercial property top of mind. Organizations and businesses should not confuse short-term performance impacted by the current crisis as a blanket long-term preference. As office buildings went from being 87 percent occupied globally in February to virtually empty in April, creative workers adapted to the new normal. Many are productively working from home but anxious to return to the office once it is safe to do so. A recent Stanford study illustrated the productive gains made by employees who work from home but also indicated a longing to return to an environment that fosters interaction with colleagues and community connections. Ready to make a move? Get started by contacting us. From a real estate perspective, from workplaces to warehouses, our market is quickly adapting to the change. Although, scary at times, change is no stranger to the real estate industry. It is something we are very much used to and can sometimes use in our favor to benefit clients. Cushman & Wakefield | Commercial Property Southwest Florida now uses video conferencing, cloud computing and other digital resources for greater levels of connectivity over a myriad of locations throughout the world. Investors and property owners alike can connect with ease. One thing is certain. Working environments as we knew them have probably changed forever, as industry leaders are discovering irrefutable evidence that individuals can be equally effective working remotely. Technology allows us to connect as if we are in the same rooms together. Working from home does not present a one-size-fits-all solution for everyone, however. Through Cushman & Wakefield’s propriety tool, “Experience per Square Foot,” our workplace specialists have captured more than 2.5 million data points from workers all over the globe in the pre- COVID-19 era and another 1.7 million data points from more than 40,000 respondents in the current work from home environment to develop a report, entitled, “The Future of Workplace.”  It illustrates the difference of workplace environments for different age groups, including Baby Boomers, Gen Z and Millennials. “We know the time is now for many of you to make your move in order to survive and thrive in the real estate market, and our team is well positioned to help you successfully navigate your commercial property needs through these unprecedented times,” said Shawn Stoneburner. Going forward, the office of the future will become a place for connectivity, both virtual and physical. Businesses will need to create an environment where people want to thrive as opposed to seeing the experience as a chore or a grind. Two horizons will likely develop. The first horizon is an immediate return to work and recovery ready phase as evidenced by the “Six Feet Office” concept developed by Cushman & Wakefield. The second horizon looks to the future, once things do return to some form of status quo and we are in a position to make decisions based on normal business operations as opposed to crisis management. “We may see a surge of property owners make a move to sell as business owners seek new workplace solutions and investors look to diversify,” says Shawn Stoneburner. COVID-19 is forcing many sectors of the economy, including real estate, to adapt and evolve. It’s the decisions you make now that will make you stronger when we come out on the other side of COVID-19. It’s during times of crisis, doors open to opportunity, while others may close. Cushman & Wakefield | Commercial Property Southwest Florida is rising to the occasion, defining its role, embracing technology, creating environments and opening doors to opportunity so that our clients can soar. To connect with Southwest Florida’s leading commercial property experts, Gary Tasman and Shawn Stoneburner of Cushman & Wakefield | Commercial Property Southwest Florida , call 239-829-5400 or email timetosell@cpswfl.com.

2020 TENANT PREPAREDNESS FOR HURRICANES   Obtain a copy of a Hurricane Preparedness information sheet such as FEMA Hurricane Hazards.  We can fax you a copy upon request. Make sure that your flood and contents insurance policies are in place.  NOTE:  If a hurricane is in the box/cone, the insurance companies will not insure you.  It is too late! Tenants on the ground floor should place any loose items outside their store location inside. Place a towel along your store front door since the sills are usually lower and wind driven rains can enter your unit. Remove all computers, if possible, to a core room where the door can be shut and the devices can be placed up on tables. If computers and hardware can’t be removed, place a garbage bag around the item, pull all the slack out of the bag and put duct tape around the base to make a seal.  A couple of extra pieces can be used to strap across the item securing it to the table and securing the bag so it doesn’t flap if it is exposed to the wind. With windows, close the drapes or other type of window covering.  We do not recommend taping the windows.  This leaves a sticky residue and is hard to remove.  If an airborne object hits the window, it will break anyway. Do not add plywood to store fronts unless storm shutters are provided for the entire building or you have approval from the Owner.  Drilling into the windowsills and frames can damage the sills and ruin the windows.  You will be responsible for replacing the sills and frames if you do this without the Owner’s approval.  If you want storm shutters, it will most likely be at your expense but will still require Owner’s approval. Any paper files, computer disks or stored information that is critical to your business should be copied with one copy going with you and office copies placed in a secured room with your computer equipment. If you are in an Association check your by-laws to see who is responsible to install shutters/window protection. If you occupy a newer building you may have impact glass which is rated to Miami/Dade wind calculations. Everything else in your suite should be left operational such as your air-conditioning, electrical and plumbing.  If we have flooding, we will have professionals secure the buildings and make them safe before you can re-enter the premises if there are sustained damages. If your building is flooded or damaged, DO NOT enter the building.  There could be hot electrical lines.  Also, look for downed power lines that could still be energized.  Unknown structural problems from a severe storm of Category 3 or above could cause a potential for a cave-in of the walls or roof. Read your lease.  In most cases, you are responsible for your contents and getting your business up and operating once the building is operational. Severe hurricanes are made up of numerous tornadoes and high winds that can cause structural damage.  Be careful entering your unit or building and if the structure looks damaged, do not enter until you have approval from Property Management. Be prepared for prolonged repair periods if your suite is damaged.  Contractors will be overwhelmed with work.  With contractors being spread thin, they may not be able to respond quickly. Acquiring materials for repairs will also be hard, if not impossible, to find. We know how unpredictable hurricanes can be and we need to be prepared when a hurricane advisory is given. We are experienced in dealing with hurricanes and will do our utmost to secure and repair the structure.  Then we will access the individual units and building again to provide a watertight healthy environment. For questions, please call your Property Manager or 239-489-3600, leave a message and the on-call Property Manager will be notified. More information on hurricanes can be found on web sites such as NBC-2 or FEMA.     Thank you and stay safe! Your Property Management Team