This Week’s Denver Deal Sheet
Bisnow August 31, 2022 Kairos Investment Management Co. partnered with private real estate investment firm Harbor Associates to acquire...
January 22, 2020
Once there are widespread vaccinations and people begin shopping in physical retail locations, will that make a dent in e-commerce sales and warehouse demand?
One analyst group says no.
While BTIG sees more in-person shopping on the horizon, it does not expect a material shift in e-commerce demand. In fact, it sees more need for modern warehouse facilities in 2021.
BTIG predicts the drivers of this warehouse demand will be retailers rushing to restock inventory, household formation increasing and Coastal-to-Sunbelt relocations bringing swift online fulfillment expectations to new markets.
As people migrate to the Sunbelt, demand will shift. BTIG says population growth and household formation in Tier II industrial markets materially outpaced Tier I markets in 2020. It expects this trend to accelerate in 2021. Of the 29 Tier I and II markets BTIG tracks, 16 experienced above-average growth. Thirteen of those 16 were in the Sunbelt States. Seattle, Denver and Indianapolis were the three exceptions.
This is not to discount the influence online shopping has on the industrial market and will continue to have even as physical retail stores return to pre-pandemic operations. In a recent survey, BTIG found that 75% of respondents indicated they would shop online as much or more next year, even after a vaccine is available.
As this happens, retailers have to restock their inventory. BTIG says the pandemic-driven shift to online retail effectively “broke the supply chain.” BTIG cites the ISM Service PMI report where respondents noted that inventory levels were too low only three times in the last 23 years: March, November and December 2020.
While BTIG is bullish about e-commerce growth this year, not everyone believes it will continue to flourish at these strong rates after the pandemic.
“We saw the growth in e-commerce go through the roof with the pandemic started,” Jonathan Needell, the president and chief investment officer at KIMC, told GlobeSt.com in an earlier interview. “I think that we can expect the growth rate to decline fairly dramatically just because the denominator is so much greater and there will be pent-up demand. That could mean that the growth declines, flattens or it goes to a lower growth rate. It is hard to say—and it could re-accelerate.”
Bisnow August 31, 2022 Kairos Investment Management Co. partnered with private real estate investment firm Harbor Associates to acquire...
Real Estate Capital USA September 13, 2023 Check out the latest insights from Real Estate Capital USA’s Real Estate...
L.A. Business First March 6, 2023 The former TV Guide building in Hollywood, California, is getting some upgrades as...
REBusiness Online August 30, 2022 A joint venture between Rancho Santa Margarita, Calif.-based Kairos Investment Management Co. and Harbor...
Vigour Times September 17, 2023 Briana Succop has been appointed as the new senior investment director at Kairos Investment...
Yield PRO February 17, 2022 Kairos Investment Management Company (KIMC), a firm that focuses on value-based real estate investments...
Landlords urge Washington for more rental aid, after the CDC temporarily halts evictions Quote by Jonathan Needell | MarketWatch...
Connect CRE California April 28, 2023 Kairos Investment Management Company, a firm that focuses on value-based real estate investments,...
18101 Von Karman, Suite 1100
Irvine, CA 92612
(949) 709-8888
(949) 800-8500
investorreporting@kimc.com
Copyright © 2025 Kairos Investment Management Company | Disclosures
Kairos Investment Management Company is an Equal Opportunity Employer and, as such, does not discriminate in employment on the basis of an applicant or employee’s race, ethnicity, ancestry, national origin, color, sex, pregnancy (or related medical conditions), childbirth, family status, gender, gender identity or gender expression, age, religion, marital status, sexual orientation, disability, medical condition, military or veteran status, reproductive health decision making, or any other protected classification or characteristic under applicable federal, state or local law. Kairos will not discriminate against an applicant or employee who has one or more protected classifications, is perceived or regarded as having one or more protected classifications, or is associated with someone who has one or more protected classifications.
Kairos Investment Management Company will also provide reasonable accommodations to applicants and employees who may need such accommodations in connection with employment with Kairos on the basis of their disability, religion, status as a victim of domestic violence or pregnancy. An applicant who needs an accommodation in order to pursue employment with Kairos should contact Human Resources at HR@KIMC.com to request such accommodations. Kairos will engage in a good faith interactive process with the applicant to explore accommodations that will be effective, reasonable and not create an undue hardship.
You can see how this popup was set up in our step-by-step guide: https://wppopupmaker.com/guides/auto-opening-announcement-popups/
You can see how this popup was set up in our step-by-step guide: https://wppopupmaker.com/guides/auto-opening-announcement-popups/