As the country begins its economic recovery efforts in all industries, it remains clear that last-mile logistics and solid infrastructure are key to seamlessly fueling growth throughout commercial real estate and beyond. Historically, the health of the commercial real estate segment has been a trustworthy indicator of the elasticity of the U.S. economy. CCIM Institute and its Chief Economist K.C. Conway recently released a special report entitled “Last-Mile Logistics: Commercial Real Estate’s Growth Engine,” that illustrates how logistics infrastructure is driving the where and why for site selection across property types, advancing job growth and the economy in the U.S.
Last-mile logistics failures have played an intricate role in recent societal disruptions, including the cyberattack that shut down the Colonial Pipeline and the global computer chip shortage that paralyzed automobile manufacturing and even home building due to appliance shortfalls. Amazon’s global dominance and COVID-19 have further highlighted how last-mile logistics and the underlying infrastructure that enables it are systemic to all aspects of our economy, including commercial real estate.
“Last-mile logistics is an on-time and in-full process, and commercial real estate is the track upon which this relay race plays out,” says Conway. “This report offers a deep understanding of the drivers of change and where they are headed in this new era of last-mile logistics, revealing both the shortcomings in our current infrastructure and the opportunities for the industry and the country as a whole.”
Highlights of CCIM Institute’s newest report include:
- In-depth analysis of Amazon’s “shop-online-and-deliver-to-me” vs. Walmart’s “buy-online, pickup-in-store” last-mile models.
- Why last-mile logistics infrastructure centers arounds the Golden Triangle, where 70% of the U.S. population lives, representing 50% of GDP – including an interactive story map.
- Details of the modern e-commerce warehouse, requiring twice the footprint as those a decade ago, clear ceiling height of at least 32 feet, and proximity to logistics infrastructure in the Golden Triangle.
- The effects of consolidation and mergers in the industry, like the May 2021 announce merger between Monmouth MREIC and iconic CRE investor Sam Zell and his Equity Commonwealth REIT.
- The impact of last-mile logistics on office, multifamily/housing, and hospitality and restaurants – not just retail and industrial.
- Why retail-to-industrial conversions continue to grow in popularity.
“The report is a topical signpost and incredibly relevant, given the national conversations being held about the country’s flagging infrastructure,” says 2021 CCIM Institute President Timothy S. Blair, CCIM. “We hope the insights and expertise of our chief economist help better inform these discussions and decisions – at both the legislative and industry level.”
The full 2Q21 report can be downloaded for free at www.ccim.com/insights.