Blackwells Capital Activist Presentation Deck
POTENTIAL BENEFICIARY FROM RE-SHORING BACK TO THE U.S.
As the U.S. economy restarts, adjustments to business supply chains will increase the demand for warehouse space. The
downward trend in inventory-to-sales ratios since the early 1990s could reverse as manufacturers, wholesalers and
retailers store materials and products closer to manufacturing centers and consumers
Additionally, businesses may create more domestic supply chains as they re-shore or near-shore production
According to CBRE Research, a 5% increase in business inventories requires an additional 400 million to 500 million sq.
ft. of warehouse space
Markets with convenient access to seaports may offer very limited space options. This likely will benefit inland hub
markets, including the Inland Empire, Atlanta, Pennsylvania I-78/81 Corridor, Memphis, FL 1-4 Corridor, Greenville and
Central Valley, CA
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Occupied space (L)
Source: CBRE May 14, 2020.
Link: https://www.cbre.us/research-and-reports/US-MarketFlash-Distribution-Hubs-Will-Benefit-from-Increased-Business-Inventories.
Business inventories (R)
Strictly Confidential & Trade Secret
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US$ (trillions)
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