The surge in consumer goods shopping during the pandemic is having a significant impact on Chicago industrial expansion at mid-year 2020, according to a Q2 2020 Chicago Industrial Report from Avison Young.
Amazon leads the pack in the ecommerce space race, adding more than 2.4 msf in the first six months of 2020 and on track to add another 4.3 msf by year end. This will bring Amazon’s total Chicago industrial space commitment to 15 msf. Amazon is just part of the story, however, as consumers gravitate to buying goods online from a variety of businesses.
Target Sales Jump 141% During Covid-19
Target and Walmart are also reaping the benefits of having consumer staples in stores and available through online and curbside pickup during the pandemic. Consider that:
- Target reported a 141% increase in online sales during Q1 2020, including a jump of 282% year-over-year in April sales, during the early days of many state’s lockdowns.
- Walmart saw a 74% jump in online sales in the first quarter, with strong results for grocery pickup and delivery services, and its online business.
“Amazon and other ecommerce related companies have shown an incredible appetite for new space in the Chicago market,” said Christopher Lydon, an Avison Young Principal in Chicago. “The ecommerce sector, along with traditional manufacturing and logistics businesses, are strong growth drivers for Chicago’s industrial sector and the local economy.”