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Online shopping is making congestion worse by adding endless delivery trucks to cities that are not designed to handle the rising number of daily deliveries.
This website serves as a guide to how e-commerce has affected industrial real estate and building design.
One-day and same-day deliveries are causing companies to need warehouse space closer to the dense urban areas they are serving. However, this land is scarce, expensive and involves a long development process.
“Retailers and logistics firms are establishing warehouses closer to large urban centers to keep up with rising consumer demand for faster delivery of products ordered online.”
Logistics development company Prologis has built the first multi-story industrial warehouse in the U.S. just south of Seattle. Other multi-story warehouses have been planned or proposed in New York City, San Francisco and Los Angeles as growing e-commerce demands faster deliveries.
“Industrial real estate analysts say that in recent years, an increasing number of massive distribution centers have popped up in response to growing e-commerce.”