Closer and closer: What does the growth of urban logistics mean for an industrial property strategy in the UK?
Much of the current narrative around urban logistics fails to grasp what the term actually means. Is it just distribution space within urban areas? Is it urban if it is situated outside towns, but delivers into them? In reality, it is all these things.
It is product that fulfils delivery to the end user in the shortest possible time. But it is also a description of the process as much as the product. Defined by us as an industrial use asset with a distribution function in urban areas between 25,000 and 75,000 square feet (2,322 to 6,968 square metres), the subsector is discussed as an opportunity with increasing frequency.
The concept is not new; it has been with us as long as cities have. But it has seen an evolution. Consumers’ shopping habits and their perceptions of the importance of delivery speed have resulted, rightly or wrongly, in a need for proximity.
Investors anticipate enhanced returns from real estate that enables the rapid satisfaction of goods