The cardboard real estate boom is here

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The rise and pandemic spike of e-commerce sales has had widespread effects on the economy, from the closure of retail stores to the spread of fulfillment warehouses to the ubiquity of last-mile delivery services. It has also meant that the world is using a lot more boxes.

According to new research from the commercial real estate company Newmark, the rise of e-commerce is fueling another kind of boom in the factories and warehouses that produce and distribute packaging: Plastic bags, padded envelopes, and classic corrugated cardboard are in growing demand, and so are spaces where these items are produced.

“An e-commerce sale requires seven times more boxes per dollar sale than a brick-and-mortar retail purchase,” says Mark Russo, associate director and lead author of the Newmark report. “You can see with that one stat why the packaging world is changing.”

+INFO: Fast Company

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