Key points:

-Traditional retailers and ecommerce platforms have been raising the bar to meet customer expectations

-Location of last leg logistics is determined by rapid delivery, agility and efficiency, reducing costs per parcel against fixed costs and being located as close to the end consumer as possible, in densely populated areas

-The increasing demand for logistics solutions in urban centres has led to an increase in both deal volumes and M&A activity

-Finding properties that benefit the occupiers’ operations in terms of agility and efficiency can be challenging, driving the need to explore mixed-use residential assets

-Converting centrally located retail warehouses to last leg delivery logistics hubs or using car parks in central locations to stage and store vehicles presents an opportunity

-The sensitivity around the profitability of the urban logistics model and scarcity of urban industrial real estate will become more acute and drive a closer investment dynamic between occupier, developer and investor