Blackwells Capital Activist Presentation Deck
BENEFICIARY OF LONG-TERM SECULAR SHIFT TO E-COMMERCE
E-Commerce Growth Provides Long Runway for Strong Fundamental in Industrial Real Estate
Double-digit e-commerce growth and the ongoing supply chain evolution in retail over the last 5 years has drove steady
demand for industrial real estate assets
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E-commerce fulfillment centers generally require 3x the warehouse space as a retail fulfillment center due to the wider
variety of goods sold on the internet compared to in-store and the additional space needed to pack or sort items for
delivery
The relationship between e-commerce sales growth and industrial trailing twelve-month absorption strengthened over the
last eight years
Amazon has already signed 55 leases YTD and 28 MSF according to Co-Star as of July 2020
The rising use of e-commerce is expected to create additional warehouse demand as consumers continue social
distancing even after states and cities reopen their economies
Established e-commerce hubs at major transportation centers should see strong fundamentals as many occupiers
recalibrate their supply chains and build automation and efficiencies into their distribution networks
Super-regional distribution markets, such as Chicago and Dallas/Ft. Worth, appear particularly well positioned because of
their central locations
U.S. E-Commerce Sales Continue to Take Longer Share of U.S. Retail Sales
14%
6%
5%
12%
4%
10%
3%
8%
2%
6%
4%
2%
0%
BW BLACKWELLS CAPITAL
ТИТ
US e-commerce sales as a % of headline US retail sales
Source: U.S. Census, Company Data, Morgan Stanley Research.
Strictly Confidential & Trade Secret
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1%
0%
(1)%
(2)%
(3)%
Industrial SS-NCI growth
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