- The shift towards buying online has created a need for more warehouses in the US.
- But, growing demand has increased the cost of the industrial land plots where these warehouses are being built.
- Those costs could potentially be passed down to the consumer in the future.
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You could be paying more for online shopping in the future — here's why
There's been a surge in the price of industrial land in the US, thanks in part to e-commerce companies building warehouses and fulfillment centers.
The rise of online shopping is driving up land prices in some parts of the US.
According to the real-estate company CBRE, there has been a surge in the price of industrial land in the US, thanks in part to e-commerce companies' demand for warehouses and distribution centers.
CBRE found that the average price for large plots of land – between 50 to 100 acres – doubled by 50% in the last year, to more than $100,000 per acre.
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Amazon has 140 fulfillment centers across the US, which vary between large-scale warehouses and smaller locations.
According to CBRE, smaller industrial plots, which are often closer to urban centers and handle same-day shipping, have also seen a cost increase in the last year – from $200,000 per acre to $250,000.
These price increases could eventually trickle down to the consumer as e-commerce companies look to cover their shipping costs. Amazon currently absorbs some of its shipping costs to lure in customers with cheaper prices. In 2016, it spent
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