E-commerce fosters giant warehouses

Posted by Nermin Hajdarbegovic

Online shoppers are not just killing retailers on main street, they seem to be taking creating a lot of demand for oversized commercial storage units suitable for logistics and delivery outfits. In other words, small warehouses are going out of style, fast.

Property Magazine International reports that 25 million square meters of retail space will be needed over the next five years to keep up with e-commerce trends. That is the equivalent of 3,300 soccer pitches and some developers might end up driving white Bentleys, just like soccer footballers.

It is estimated that online outfits will also need an additional three million square meters of specially equipped e-fulfilment space over the next five years. Another 22 million square meters is needed to keep retail stores and satellite warehouses stocked.

The growth of e-commerce will also drive further development of so-called dark stores, which is basically a fancy name for huge warehouses where goods are packed and shipped to consumers.

Jones Lang LaSalle executive Paul Betts argued that many retailers have simply outgrown their supply chain infrastructure and they have to work out new logistics models for multi-channel retail.