Why Toronto Real Estate Industry Should Capitalize On the Rising Popularity of Online Retail

Why Toronto Real Estate Industry Should Capitalize On the Rising Popularity of Online Retail

E-commerce has seen unprecedented growth over the past few years. It’s estimated that online retail accounts for 9{88a62e5af825eb121c36fdd96398ca55786166c329e49c5a0f7ae32937ba5656} of all retail transactions in the US and 7.3{88a62e5af825eb121c36fdd96398ca55786166c329e49c5a0f7ae32937ba5656} in Canada. Moreover, Canada’s e-commerce retail trade generated revenues amounting to about 40 billion in 2018, and the value is expected to rise to 55 billion by 2022. The growth of e-commerce has seen the collapse of some brick and mortar stores.

Although consumers’ shift to online shopping may alarm the property sector, there is still a gap between the online retailers and consumers that the Toronto real estate industry needs to seal. That said, let’s examine why you need to capitalize on online retail as a property investor.

Demand for Warehouses

The growing e-commerce retail sector has led to an increase in demand for storage facilities. Although some customers may benefit from day delivery, customers who order bulky goods or whose order require more extended processing periods may have to wait for the delivery for days or even weeks. Consequently, the ordered products need to be stored safely and securely before being distributed to their final destinations. Additionally, the retailers require space to store products received from their suppliers. This is where real estate investors should come in. The demand for warehousing facilities gives real estate developers an excellent opportunity to play a significant role in the booming online commerce. You can opt to build a warehouse from scratch or renovate old, underutilized buildings, and subsequently lease or sell them to the retailers.

Tapping Into the Need for Distribution/Pick-Up Stations

Besides storage facilities, online retailers require facilities to process the ultimate distribution of orders to consumers. Moreover, the centers serve consumers who choose to pick their products rather than having them delivered at their doorsteps. This also forms a market gap for real estate investors to fill. Nevertheless, it’s of utmost importance to select viable places to construct or renovate such centers not only to get closer to consumers and retailers but also to offset some logistic imbalances.

Location and Accessibility

Whether you wish to renovate an underutilized building or construct new structures, it’s important to note that the dimensions of the facilities do not matter much as the location. When selecting a site, you need to consider its accessibility via a variety of transport means and its proximity to consumers. This may involve considering new areas in Toronto that may have been ignored in the past.

The employee base will also influence your location choice. Large-scale warehousing needs a more extensive employee base ranging from ‘pick and pack’ workers to supply, logistics, and office workers. Additionally, investors who provide considerable employment opportunities are highly considered by the Ontario state entities, and this may ease your access to tax reduction, grants, and loans to promote your property initiative.


Brick and mortar stores in Toronto are indeed closing down as consumers shift to online shopping. Online retailing gives customers a refreshing experience accompanied by a chance to select and compare a wide variety of goods before placing their orders. The Toronto real estate can tap into the growth of e-commerce through the provision of warehousing, distribution, and pick-up facilities. However, investors should select their sites wisely to ensure easy access and proximity to consumers and employees.

Michaela Foy

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