Logistics industry moves to urban areas

E-commerce is forcing more retailers and logistics operators to set up their delivery systems in urban areas in order to shorten their delivery times.

That trend, which has been developing for several years, is leading to warehouse-distribution facilities being developed in multistory warehouses, pick-up lockers and infill service centers, according to a report by CBRE Group Inc.

The report, Last Mile/City Logistics, studies the global market forces that are causing retailers to set up their supply chains in more densely populated communities.

One reason for the change is that millennials, many of whom live downtown or in central business districts, want their electronic purchases delivered to their home, not to their office or for in-store pickup.

In the United States, 76 percent of those surveyed said they prefer home delivery, well above Europe and Asia Pacific, according to the study.

The Inland Empire isn’t losing any of its logistics operation to this trend, but the region for several years has been seeing a move toward smaller operations that are more flexible and can make their deliveries quicker said Len Santoro, senior vice president with CBRE Ontario and a longtime industrial broker in the Inland Empire.

“The demand for buildings right now in the 100,000 square foot range is off the charts,” Santoro said.