Demand For 'Last Mile' Space is Up

As consumers continue to shop online, spaces in highly populated areas are in high demand. Online orders are loaded onto trucks and vans at these ‘Last Mile’ distribution centers, then delivered to their final destinations. This demand is creating a scarcity of spaces near major cities, especially as more and retailers offer same-day deliveries. And the pandemic has fueled this trend at a rapid rate.

Bret Jordan, president of Ryan’s northwest region, told the Wall Street Journal, “The pandemic advanced us 10 years in the e-commerce business model. So really, we’re trying to respond to conditions that we were expecting to show up in 2030.”

In Seattle, Ryan formed a joint venture with GTIS Partners to build a vertical last mile facility to circumvent land constraints and better fit into a densely populated area. This creative solution comes at a time where developers are facing challenges including eligible land for industrial projects being turned into other uses.

Read more about this demand for ‘Last Mile’ space in the Wall Street Journal. This article does require a subscription.