The warehousing market is always affected by what is happening in the economy as a whole. With the economic downturn investors are waiting for better times but that does not mean all areas will suffer. Robert Cohu from Montagu Evans and Tom Davies from Bloom Developments, took the stage on the 22nd November at our Last Mile & E-Com Online Event to discuss the future of ultra-urban facilities and who will benefit the most. Watch the full video below.
Occupiers are still looking for the ultra-urban warehousing for last mile operations. Such facilities, however, are in short supply. Both Montagu Evans and Bloom Developments look at the market in Zone 1 and 2 in Central London.
Many of the buildings have either been demolished to make space for residential developments, or are just not upto a good standard. Despite that, multiple projects are underway that will transform the landscape.
For example, Amazon is looking into operating a central location where pedestrian couriers can deliver parcels. The goal is to limit the mileage and reduce emissions.
‘More and more companies are looking at such spaces as they need to cater to those end-consumers,’ Tom Davies explains.
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On the investment side of things, there is a lot of capital looking for opportunities but conditions are not very clear. Both Robert and Tom believe investors will wait until they can get more favourable conditions. There is also the expectation that the market will not reach the peaks we saw in 2020 and 2021.
Who is it for
Ultra-urban facilities are often seen as the theritoty of fast delivery companies and quick commerce. This is true to some extent but other companies are also hiring such spaces. They might want to serve their consumer better by being closer and still offering Next Day Delivery. ‘Also the investment in the rapid grocery area has calmed down,’ explains Robert Cohu.
You can watch the full video recording from Last Mile & E-Com Online Event with Rovert Cohu and Tom Davies now. You can also learn more about Doddle on their webpage. And more summaries from Last Mile & E-Com Online Event here. ✷