E-commerce and last mile logistics accelerate demand for industrial spaces

The global situation changed consumer habits, leading a surge in the-commerce market, which triggered an increase in demand for industrial spaces for last-mile logistics.

According to Francisco Muñoz, Senior Vice President at CBRE Industrial and Logistics, the rising of hubs and logistic center´s share of the industrial market went from 5% in 2017 to 13% in 2020, making it as the third industry with the highest demand for industrial spaces.

During 2017 and 2018 the e-commerce market in México used large distribution centers between 60,000 and 100,000 square meters outside the main cities.

Today, the future for logistic and delivery businesses is in no doubt within the use of smaller warehousing spaces (between 1,000 and 9,000 m² located inside the cities, closer to their customers to achieve more efficient time in delivery services.

Consequently, industrial developers have begun to invest in properties within cities to meet the industry’s new demands in the market.

In addition, Muñoz pointed out that the retail sector’s need for distribution and delivery is considered to have also boosted the construction of logistics spaces nationally, closing last year with more than two million square meters under construction, being the highest figure over the last five years.

If the increasing of the e-commerce market and digital transformation continues as predicted, companies will be needing more and more last-mile logistics. Therefore, the demand for industrial spaces will continue growing for both large distribution centers and last mile with 3PL.

Oradel Industrial Center offers inventory and build-to-suit industrial buildings for international companies seeking to establish operations in Mexico. The industrial park has all infrastructure and services needed and is located just 10 minutes from the Texas border.