Magnified e-commerce trends due to the pandemic have put a strain on the global supply chain. On-demand warehouse space start-up FLEXE has raised $80 million over the last several months to help retailers meet their volatile delivery needs.
More on FLEXE
FLEXE offers on-demand flexible warehousing space to leading retailers like Walmart (NYSE: WMT) and Staples. The company is calling its offering “warehousing-as-a-service.” Instead of getting tied into long-term leases, retailers can use FLEXE’s marketplace to find warehousing space when they need it.
The company just received an investment of $10 million after rounding up $70 million in December due to the speed at which they’re growing.
What will this mean for warehousing and logistics real estate investors? One would imagine that this type of marketplace option is great to fill the slack warehouse landlords have. But what will this mean in the long term? Will some warehouses be underwritten to have fully flexible lease offerings in the future?
The Millionacres bottom line
First, there were short-term rentals with Airbnb (NASDAQ: ABNB). Then co-working hit offices. Now short-term leases have hit the industrial real estate vertical. If you’re investing in industrial real estate investment trusts (REITs), it’s important to take note of this trend.