How e-commerce has impacted the logistics real estate space

Over the years, consumer habits have evolved largely thanks to the constant technological process that has led to blanket distribution of the Internet and, as a consequence, spread of smartphones.

As a result, more and more consumers are choosing to shop online, which is driving the growth of e-commerce.

After the COVID-19 pandemic, a gradual shift from physical trading to online retail transactions has inevitably accelerated, with many businesses taking advantage of the economy “from the comfort of their homes.”

“However, this is putting increasing pressure on most businesses to meet same-day or next-day delivery expectations and retailers are starting to push the limits of what they can achieve with existing supply chains,” says Glesson.

Developing a clear strategy to deliver goods across multiple channels is critical for everyone involved in this business. Maintaining a consistent customer experience remains a challenge for many businesses, and this is where real estate logistics companies can add value.

The growth of e-commerce is driving the demand for logistics properties.

Retail accounts for about 40% of demand for logistics real estate, and up to two-fifths of that share is for e-commerce, as analyzed by Glesson.

In addition, online retailing often requires more retail space than physical retail. Reasons for the increased use of warehouses include a wider range of goods, more inventory, larger parcel delivery operations, and value-added services such as handling returns.

Many of these logistics facilities are able to operate efficiently thanks to automated systems, with basic operations ranging from unloading and storage to picking, packaging and shipping