Research

Urban logistics: Multistory warehouses

April 08, 2019

New multistory distribution centers are hitting the U.S., where land is scarce and population centers are dense. The growth of e-commerce and increasing customer service expectations have intensified the need for fast delivery. Logistics players are reexamining all aspects of their distribution networks to keep pace. In recent history, industrial developers and occupiers have favored big, horizontal facilities located in suburban and exurban areas, as they are cheaper to build and rent. But with logistics being the majority of operating costs, are e-commerce companies willing to pay more for a more urban-centric location to bridge the gap? To get a warehouse with enough storage capacity and that is close enough to nodes of consumers, the only way to go is up.

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