It is well-known how Amazon has transformed the retail sector as millions of Americans turn to the e-commerce website to buy products at the click of a button. Less known is the broad-reaching effect Amazon is having on the commercial real estate sector.
In Oregon, there has been a surge in demand for mini-warehouse facilities and self-storage space from business owners who sell or store products sold on the e-commerce site. Amazon charges fees for storing inventory, so many small online retailers buy their own warehouse space or rent self-storage units to fulfill customer orders.
As a small-business lender in the commercial real estate space, Alex Cohen, CEO of LibertySBF, notices growth trends in the sector firsthand. He has seen strong demand for self-storage and warehouse space in Portland, where the population surged 11% between 2010 and 2017.
“A lot of our borrowers are Amazon resellers,” says Cohen. “The big headline is the decline of big-box retail and the ascendency of e-commerce. We feel that on the lending side.”
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Article by: Kim Moore | March 22, 2019 | Oregon Business