The impact of e-commerce on industrial typology

The impact of the arrival of e-commerce in all corners of the world has had a marked impact on the industrial real estate sector.

In the United States, the presence of e-commerce has generated an evolution in products, while in Mexico this area shows great potential.

When a company reduces costs by decreasing its investment in physical outlets and adopts an e-commerce model, part of that investment can be redirected into other elements that become crucial in its supply chain, warehouse storage and logistics.

When a company reduces costs by decreasing its investment in physical outlets and adopts an e-commerce model, part of that investment can be redirected into other elements that become crucial in its supply chain, warehouse storage and logistics.

A trend in dimensioning, according to Cushman & Wakefield is the average available height in a warehouse in 1997 was approximately 7.62 meters, 23 years later the typical height has reached 11 meters. These types of changes are due to the constant development of new technologies that optimize vertical storage strategies, which can lead to reducing a building’s floor area, and improving space utilization.

E-commerce’s potential in Mexico

In Mexico, an industrial or logistics building can have an area from 5,000 m² to 40,000 m². However, the demand for these services in Mexico continues to grow. As this niche is established in Mexico, it will lead to an increase in the average square footage of these properties.

At present, most of the leading e-commerce company’s distribution centers are concentrated in just one part of Mexico, which is related to population density. In the long term, this may generate increases in distribution costs due to increased demand throughout the country. Various regions have a high potential for meeting this demand and contributing to the prospective growth of e-commerce, as there are metropolitan areas and cities that, due to their positioning, can serve as important distribution hubs.

In Mexico, as well as in the rest of Latin America, the impact of e-commerce on the real estate industry has yet to be seen, as there are still distribution centers located in a few areas across the country. However, the gradual need for this new consumption model will establish itself in the domestic market, and will generate higher-impact opportunities for the manufacturing industry.

For all these reasons, Oradel Industrial Center offers industrial buildings not only for manufacturing operations, but also for logistics companies to store products destined for e-commerce. In this way, Oradel is seeking to contribute to the growth of e-commerce in Mexico.