Global tectonic shifts now being driven by E-commerce
According to the newly released Last Mile / City Logistics Report from CBRE, the rapid rise of e-commerce has driven the most disruptive movement to the industrial & logistics industry, transforming the way we think about industrial real estate and restructuring the supply landscape forever.
The growing population of cities, mixed with new age consumer behaviours–driven by the millennial generation–has put supply chains under increasing pressure to deliver products and perishables into cities under narrow time frames. In order to meet this demand, urban areas around the world are evolving towards a more dynamic level of transportation as city logistics and the last mile come into play.
Over the past years, consumer expectations have drastically changed, and supply chains are being forced to adapt accordingly. According to research from CBRE, UK millennials do more than a third of their non-food shopping online, and half are expected to do over 50% of their non-food shopping online by 2019. The UK is one of the leading countries on online consumption, which can be attributed to its high-speed Internet connectivity and smartphone adoption. CBRE’s Last Mile / City Logistics report predicts that as internet speed and tech development progresses further afield, we will witness mirrored behaviour from consumers across the globe.
Machiel Wolters, Head of Industrial & Logistics Research of CBRE EMEA commented, “the consumer landscape as a whole has expanded rapidly with the help of e-commerce, and this will undoubtedly continue at an accelerated pace across the globe. The millennial generation is a driving factor of this change and as they continue to populate urban areas, industrial operators will need to adapt with the evolving landscape in order to survive in this competitive business. Securing strategic sites in and around cities is key, and besides spurring vertical building solutions, this will bring opportunities for light industrial property and even retail stores to act as last mile facilities.