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E-Commerce Industry’s Last Mile Needs Create New Demand for Old Warehouse Space

10 Oct 2018 9:49 AM | Anonymous member (Administrator)

Redevelopers can use everything from old government facilities to brownfield sites to capitalize on the need for last mile warehouses.

by Joseph A. Panepinto Sr., National Real Estate Investor

Amazon launched the age of e-commerce when it shipped its first bookout of a garage in 1995. Since that beginning, consumers have grown to embrace the ‘e-tail’ lifestyle. Millennials are now driving the demand for everything from toilet paper to make-up delivered to their doorstep. To accommodate this growth, e-retailers are snapping up industrial-use land and buildings as close as possible to the consumers they need to serve.

Access to the ”last mile” of delivery in urban locations has become one of the most critical factors in site selection. Facilities must not only be the right size, they must also have access to a highway and/or waterway, appropriate zoning, an accessible employee base and be as close as possible to their customers.

Traditionally, open plan, one-story buildings have been used as warehouses. Today, buildings of several forms can be utilized, including former big-box stores; industrial sites in various stages of remediation; under-used office space; and, in one instance in Chicago, an underutilized parking garage.

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