Canada’s Pure Industrial Real Estate Trust, the country’s largest multitenant industrial landlord, expects that eCommerce will make up a significant portion of its portfolio in coming years.
According to a report by Internet Retailer, Pure Industrial Real Estate Trust CEO Kevan Gorrie said in the new few years, the number of its customers from the eCommerce sector is expected to rise by 30 percent from what it is today.
“We’re focused on growth in eCommerce,” Gorrie told Bloomberg last week. “I don’t think enough companies worry about obsolescence. We think about it all the time.”
As growth in online shopping and exports continues to rise in both the U.S. and Canada, the demand for renting space in industrial spaces has grown significantly, Gorrie explained. This demand has also resulted in decreased availability and surging rental prices in both countries.
The Vancouver-based company owns nearly 21 million square feet of space across more than 170 properties in Canada. Gorrie said the firm will aim to eventually have 40 million square feet in Canada and as much as 15 million square feet in the U.S. The focus will remain on finding locations that are close to airports and cities, which will help tenants move products efficiently during the “last mile” of transporting goods for delivery.
“You have to be able to develop,” he noted. “We will continue to deploy more capital toward development than toward acquisitions.”