Brandon Page on What Amazon’s Reported Same-Day Expansion Means for Last-Mile Industrial Real Estate
Brandon Page, executive vice president, head of Leasing and Customer Solutions at Link Logistics
By Sam Laird
Amazon’s reported plans to expand its same-day delivery network could further tighten the already constrained market for last-mile warehouse space, according to Brandon Page, executive vice president and head of Leasing and Customer Solutions at Link Logistics. Page shared his perspective in a recent Commercial Observer article on how faster delivery is reshaping industrial real estate.
How Will Same-Day Delivery Affect Last-Mile Industrial Markets?
Page told Commercial Observer that Amazon’s push, first reported by Business Insider, will move markets unevenly. “This is going to have a pretty dramatic effect on certain markets,” he said. He added that other retailers are responding by trying to catch up, which increases competition for well-located infill warehouse space. Amazon has said the plans described in the report are preliminary and subject to significant revision.
Why Does Location Matter More Than Industrial Building Class?
According to Page, most infill warehouses aren’t necessarily Class-A, but their proximity to the end customer gives them a Class-A-plus location. That proximity can outweigh a building’s age or lack of modern features. Page said buildings that are both well located and well equipped command a premium.
Is Automation Coming to Small Warehouse Buildings?
Page estimates that fewer than 5% of last-mile facilities have the kind of automated sorting technology common in big-box warehouses. As throughput for express delivery grows, he told Commercial Observer, he expects more robotics and sorting at smaller sites.
Is Industrial Real Estate “Boring and Slow”?
Page told Commercial Observer that industrial real estate is still seen by many as “boring and slow.” The reality, he said, is that there are “a ton of different tailwinds” coming from many different markets and industries.
Read More
For the full discussion, including perspectives from other industry experts, read the complete Commercial Observer article. To see how Link Logistics approaches infill and last-mile industrial real estate, visit our About page. You can also read our Industrial Real Estate 101 guide to warehouse space for last-mile delivery or explore our industrial portfolio in the East, Central and West regions.
