The New Real Estate Goldmine: Warehouses. Selling Huge Amounts Of Empty

E-commerce and mobile commerce surges have created an interesting real estate challenge: Retailers and e-tailers want tons of warehouses, as barren and cavernous as possible. The growth of Internet shopping in Europe is luring investors such as Axa Real Estate and Blackstone Group LP (BX) to the cinder-block world of warehouses, where yields are beating showy storefronts and sleek offices amid a space shortage. Companies like Amazon typically want little more than "four walls and a roof with loads of doors and a deep truck court," said Philip Dunne, president for Europe at San Francisco-based Prologis Inc. (PLD), the world's largest warehouse owner. That means building warehouses costs about an eighth as much as offices and a fifth of the price of shopping malls, according to data compiled by London-based real estate consultants Davis Langdon. Story

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