By Caroline Kelner & Michelle McMurray
Site selection criteria for logistics and distribution occupiers evolves as new customers are procured, service level requirements change, new products are launched, and costs shift. The optimal location provides the best balance of service and cost. Critical to competitive positioning is having the right items at the right place at the right time, and increasingly that time is right now. Throughout the U.S., the tightest conditions can be found in submarkets proximate to population centers with the highest barriers to supply. Retailers, both online and traditional, and third-party logistics firms are working to get closer to the consumer. This has been a boon to owner and developers of entitled land adjacent to urban areas. For many retailers, future sales – and profits – will be dependent on how quickly and consistently goods can be delivered to customers in major metro areas. Developing robust, flexible, highly responsive final mile networks is essential. As a result, upward pressure on infill land pricing – and the premium placed on assembled, entitled land ready for development – will continue to increase.