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E-commerce drives soaring demand for mega-warehouses

Monday 25 March 2013 - 11:33
E-commerce drives soaring demand for mega-warehouses

The massive growth in internet shopping is creating soaring demand for large commercial units suitable for use by logistics and delivery companies.

And an article in Property Magazine International this morning claims that an extra 25 million square metres of retail space – the equivalent of 3,300 football pitches – will be needed over the next five years to keep pace with this need.

The magazine quotes a report from property agent Jones Lang LaSalle, which says that dedicated e-fulfilment centres will require an additional three million square metres of specially-equipped space over the same period.

Simply keeping retail stores and satellite warehouses stocked with the goods they need will require another 22 million square metres of space, the company estimates.

And as e-commerce continues to grow, so-called 'dark stores' will become more prevalent, where goods are merely picked and packed for onward delivery.

“Many retailers have outgrown their existing supply chain infrastructure and are having to work out the best logistics model to service the growth of multi-channel retailing," said Paul Betts, head of logistics and industrial, Europe, Middle East and Asia for Jones Lang LaSalle.

 

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