Snapshots

Last mile logistics conversions come from varied uses

Location is key, rather than former building use, when it comes to reimagining for last mile distribution.

February 26, 2021
 
  • The need for conversions.
    The idea of Retail converting to last mile logistics facilities is front and center, especially in a post pandemic world. While some Retail spaces are undergoing conversion, many other property types are also finding new life as last mile facilities. Last mile users are more focused on location than building use.

  • A change in shopping.
    Most current conversion projects result in a last mile facility of that singular use, with fewer projects having last mile as a component of redevelopment. As our shopping continues to morph, though, we could see more mixed uses to meet those quickly changing habits.

  • Challenges.
    This conversion trend is not yet a widespread practice, despite the demand for last mile facilities. A recent report from Prologis cites economic, political, physical and legal factors being the biggest hurdles in getting conversions done. This is noted, too, by JLL teams in the dense, Urban Logistics markets; in particular, zoning and use restrictions are roadblocks in converting underutilized Retail.

  • Benefits.
    As the need for last mile facilities continues to grow, so must working with local governments. Highlighting the benefits of these facilities as higher and best use for a location will encourage adoption for the much demanded space.