Present Conditions

The "Last Mile"

The Supply Chain- Then Vs. Now

For most of the 21st Century, the last-mile of transportation was typically facilitated through retail centers. The rise of online shopping has lead to the establishment of intercity distribution centers and "last touch" facilitates the next-day and same-day delivery customers expect. Demand for infill logistics real estate has increased to provide better service and lower total supply chain costs.

(Source: Prologis)

Space Needs

A traditional retailer with $1B of sales would need 2.5 million square feet of retail space and approximately 325,000 square feet of logistics space. By comparison, e-commerce retailers need approximately 1 million square feet of logistics space to achieve similar sales.

(Source: Prologis)

Efficiency

An examination of the New York City market found that delivery costs account for 82%-92% of the total costs to complete same-day delivery for traditional distribution centers. It is at least 22 percent more cost-effective to service e-commerce demand in NYC last-mile facilities out of the Bronx versus other New Jersey locations.

(Source: Deloitte)

Urban logistical centers represent a shift of expenses from delivery-related to real estate. Centrally located distribution centers reduce the cost of rapid, high volume delivery within the urban core and dense surrounding neighborhoods.

(Source: Prologis)