Urban Logistics and Rental Growth: Evidence from Building Level Data

May 23, 2022, 14:56 PM by Ibrahiim Bayaan
The rising importance of e-commerce has forced manufacturers and retailers to rethink their supply chains, particularly over the past 5-10 years as speed of delivery to consumers has become a key differentiator for e-commerce players. This has helped drive demand for distribution centers located closer to population centers, warehousing space to store and process returned goods, and last-mile facilities to quickly deliver goods to the end consumer.
 
The shift toward e-commerce also has important implications for rent performance by location within markets. While much of the absorption in the sector has occurred on the periphery of major population centers, the rise of importance in last-mile facilities has stimulated demand within the population centers.

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