December 5, 2016
Cushman & Wakefield recently had the opportunity to explore the impacts of eCommerce on the Logistics and Retail sectors via the webinar, Bricks vs. Clicks. To answer some of the questions we have been receiving as a result of the webinar, we would like to introduce our Bricks vs. Clicks Blog Series exploring topics that could be impacted by the holiday shopping season.
Prologis recently announced a multi-story facility to be built in Seattle. Are multi-story distribution facilities the wave of the future? Will Class B and C malls be redeveloped into distribution hubs for eCommerce use?
Demand for landing the most functional last mile facilities, as deeply as possible into dense population areas, will drive development of additional projects like this.
Multi-story distribution facilities will be increasingly common in markets where land is an issue or where infrastructure issues will make it prohibitive to place on the periphery of a market where land is otherwise available and or cheap.
However, many times they are too expensive otherwise to build and aren’t likely going to be significant in markets where either land is available or where redevelopment opportunities are affordable. I see it potentially happening in the Bay Area, South Bay (Los Angeles), Seattle, NYC Metro, Miami and perhaps limited other markets. This will become another strategy where we in the US will adapt to following a more established use in select cities in Asia and Europe.
For More information, please contact:
eCommerce & Electronic Fulfillment Lead
425 785 6325
Vice President, Retail Research
916 329 1558