Spike in Cyber Monday Sales Boosts U.S. Industrial Market Demand

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The growing habit of 'point-and-click' online holiday shopping by millions of Americans is a trend that is spurring strong demand for industrial and warehouse space in the U.S. by many online retailers.

Spencer Levy, CBRE's Americas Head of Research says, "Cyber Monday is no longer a one-day event. Consumers are now spreading their holiday shopping over a 'cyber-week', taking the advantage of online sales that began before Black Friday. Continued strength in online shopping is a trends that bodes well for the U.S. industrial real estate market, as e-commerce companies and Omni-channel retailers will need more space to warehouse and process online shipments."
 
CBRE reports the following data for Cyber-Monday 2014:

• Online sales over the course of Thanksgiving weekend (Thursday-Sunday) grew 17%1 over 2013, with an average order size of $124.

• On Cyber Monday, sales grew 8.5% year-over-year, although down from 20.6% growth from 2012 to 2013.

• During the five-day "Cyber Week" period, online sales were up 12.6%, indicating that consumers are spreading their shopping activity over the course of the holiday season rather than just focusing on a single day.

• Traditional brick-and-mortar retailers seemed to reap the benefits of adopting omni-channel strategies. On Cyber Monday, department stores recorded 17.9% year-over-year growth in online sales, while the biggest retailer in the U.S., Walmart, reported its best Cyber Monday ever.

• In response to exploding online sales growth, UPS and FedEx announced that, between them together, they would hire 150,000 seasonal employees--double the number over last year--to meet the increased holiday demand.

• The growth of e-commerce has had a significant effect on the U.S. industrial real estate market, with more than 35 million sq. ft. leased by e-commerce users in 2014--and at least that much expected in 2015.