“Retailers and logistics firms are establishing warehouses closer to large urban centers to keep up with rising consumer demand for faster delivery of products ordered online.”

Key findings

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Warehouse space near urban centers is expensive, causing the need for vertical expansion which reduces the building’s footprint.

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“Despite rents being at a premium rate, the overall long-term cost for the tenant should be lower because they can expect cheaper transportation costs plus a larger labor pool.”

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The rise of e-commerce is changing shipping patterns to meet consumer demands, causing a higher frequency of multistop shipments with only partial truckloads.

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