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Warehouses Produce Huge Cash Flows


Over the past year, rents for warehouses in key locations have soared 9.9% across the US, and while there’s nothing exciting about the buildings themselves, you can’t argue with cash like that.

A driving force behind the growth is the critical need for online retailers to get their products to the customer as fast as possible—Amazon has spoiled consumers who'll settle for nothing less. And e-commerce alone is responsible for 20% of current warehouse demand, Bloomberg reports.

Previously retailers had set up a few large shipping centers in the middle of the country, but now they are looking to add many smaller, regional warehouses too. And that means the growth is likely to keep on growing. [Bloomberg]