There is no doubt that the ongoing health crisis has stoked fundamental changes in the way New Yorkers live and work. It has forced dramatic adjustments for many people. Still, there can be opportunities for those who can adapt to newfound needs and that has resulted in the city witnessing a boom in its industrial real estate market. For those looking to invest in real estate or need to purchase or rent property based on the current trends to help their business, it is important to keep track of what is happening and to have legal assistance throughout the process.
Industrial boom believed linked to online shopping
The retail sector has undoubtedly been negatively impacted by the health crisis. However, online shopping is growing markedly. There has been exponential growth because of this and many businesses and real estate owners may want to consider how to take advantage of this opening. According to one real estate company vice-chairman, growth in the first three months of the health crisis in 2020 was triple what it had been in the prior decade. Home delivery became a necessity rather than an optional convenience and this is believed to have been a catalyst.
Statistically, the numbers bear out the jump in people choosing to have items delivered instead of going to purchase them in brick and mortar stores. Approximately 11% of retail purchases were online before the pandemic. That doubled by the end of 2020 and is believed to be set to rise to nearly one-third of purchases. Black Friday weekend had nearly half of the 194 million shoppers in the United States buying online – a notable change believed due more to other causes besides the pandemic. This increase in online purchases made it necessary for industrial growth where items could be sorted and sent out for delivery. Companies needed to buy these properties to suit customer needs. By 2025, it is expected that New York City will need 30 to 40 million square feet for this purpose. The outer boroughs are the primary sites as Manhattan has yet to have these facilities built.
Legal guidance may be critical for companies involved in this expansion
Online purchasing is becoming a way of life not just because of it is currently a need, but due to its speed, convenience and lower cost of products. Even with that, savvy businesses that are trying to expand their operations in a cost-effective way must be cognizant of how to craft their agreements, have the correct permits, check the property for underlying issues, address zoning concerns, and ensure the entire process goes smoothly with problems ironed out efficiently and quickly. For help with commercial real estate and business endeavors, it is beneficial to have legal representation and guidance from the start. This is true for any business, small or large.