Underwriting

This example projects the financial potential of a last-mile logistics facility servicing the New York City area from the Bronx. The model assumes an upfront investment from private equity to acquire the property and construct the building, as firms are interested in the potential for growth in the logistics sector. Innovations in automation will both increase the efficiency of the available floor space and reduce labor cost considerably. Technologies such as autonomous vehicles and drones have the potential to expand service range, cut delivery costs, and speed up delivery times. With their data and infrastructure, logistics companies are also uniquely positioned to expand into other sectors such as food and food delivery, as well as light production and manufacturing.