Changes in e-commerce sector has caused investors to keep track of the demand in the market. Sustainability of the market demand for online sales will allow investors to expect growth in the future. The real estate market is an attractive mainstream for logistics to increase the global capital markets and flow of goods and supplies.
E-commerce will allow a logistics solution for many companies. The financial projections for e-commerce space in real estate estimates that for every dollar spent on e-commerce will require three times more logistics space for brick and mortar dollars. The drive for demand will allow more built-to-suit (BTS) facilities due to such a limited existing supply for the segment. The demand in the market for is for spaces greater than 20,000 sq. meter.
The main demand on e-commerce and the real estate market is getting goods faster to their locations. People are wanting goods faster and faster for a speed of service unlike ever before in the market. The same day or few hours delivery is very important for customer satisfaction. The other factor is reverse logistics where products are being returned. The most important element for the customer needs is having a distribution center and smart facilities in dense city areas. The other factor for success in the market is smarter facilities to create a more efficient customer service for sub-sectors in communities.
Companies that adopt e-commerce means that the demand for logistics and space will increase. Targeted offerings in real estate are essential due to companies wanting to build their own facilities. The global capital markets will see an increase just like the last decade in real estate and e-commerce demand.
Global E-Commerce Impact on Logistics Real Estate, Prologis
2 Leaders in Logistics 2019 Panel: Warehouse automation, Middle East Logistics
3 Construction Week Online; Kibsons.com
4 World Bank, Logistics Performance Index
5 Admitad Annual Report, 2018/2019