Fulfillment Centers Moving Closer to Consumers

Fulfillment Centers Moving Closer to Consumers

“The growth in e-commerce is driving up demand for smaller industrial spaces nearer to cities so fulfillment firms can quickly get their products to customers, but it remains to be seen if fulfillment centers will start operating in suburban neighborhoods.”

Key findings

“A recent study from real estate services firm JLL found that leasing demand in 2017 for industrial property — warehouses and fulfillment and distribution centers — grew in the small- to midsize-square-foot categories and away from the giant spaces.”

“In last year’s third quarter, e-commerce jumped 15.5% compared with the same period in 2016 and accounted for more than 9% of total retail sales, the U.S. Census Bureau reported.”

“In general, e-commerce merchants require more space and up to three times as many employees because of the need to have more inventory on hand that will be handled, or “picked and packed,” by the staff.”

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