Last Mile, E-commerce Continue to Eat Up Warehouse Spaces, Notes Augusto Beato

December 19, 2018
Download as PDF Single Release RSS Feed
Facebook Twitter Google Digg Reddit LinkedIn Email

Portland SEO's Augusto Beato warned online retailers of higher warehouse rents due to strong e-commerce penetration and tight market conditions for suitable last-mile fulfillment operations.

"While the continuing tight domestic market is boosting an increase in development of multistory facilities in urban locations, still there remains a shortage in warehouse spaces," notes Beato, who is the CEO of Portland SEO.

Vacancy rates for industrial and logistics space, including e-commerce fulfillment, is at a historic low of 4.3 percent and new construction is constrained, leading to limited expansion options for warehouse occupants and higher rents, according to a report by commercial real estate brokerage CBRE.

Availability rates for multistory warehouse facilities have decreased by 27 percent since 2014, with rents increasing by 20 percent.

With consumers expecting faster delivery times, there’s a looming shortage of urban infill sites for new last-mile delivery, prompting developers to build vertically, according to the CBRE report.

The continued push of e-commerce companies into opening up physical spaces, as well as traditional retailers restructuring their distribution networks to meet e-commerce demands and limited new construction, will drive down net space absorption and keep vacancy low into 2019, CBRE found. The vacancy rate has been below 5 percent since the first quarter of 2016.

Furthermore, a dramatic increase in imports ahead of September tariffs – up 4.8 percent in August – also pushed up inventory carrying costs for e-commerce and retail companies and contributed to the warehouse supply gap, CBRE found.

Engage the services of Portland SEO by following this link. To learn more about how Portland SEO can enhance online visibility, click here.

SOURCE: Press Advantage [Link]

Download as PDF Single Release RSS Feed
Facebook Twitter Google Digg Reddit LinkedIn Email

About Portland SEO :

Here at Portland SEO we earned the reputation as the best Internet Marketing Service in all of Portland for a reason. We offer unparalleled search engine optimization marketing plans Reputation Management and Portland web design Services.

Contact Portland SEO :

Augusto Beato
616 SE 68TH AVE #101
Portland OR 97215

Social Media:

Additional News Releases From Portland SEO :

December 20, 2018Easy Return Experience Crucial for E-commerce Firms, Says Augusto Beato

December 14, 2018Augusto Beato Sees Big Opportunities in Payment Fraud Solutions

December 12, 2018E-commerce Firms Need to Address Packaging and Environmental Issues Swiftly: Augusto Beato

December 10, 2018Supply Chain Firms Need to Appreciate Benefits of Digitization: Augusto Beato

December 05, 2018Trucking Industry in Need of Ideal Resolution on Independent Contracting: Augusto Beato

November 30, 2018E-commerce Deliveries Will Keep Postal Industry Above Water, Avers Augusto Beato

November 27, 2018Holiday Shipping Cost for Online Stores Gravely Eating Into Profit Margins: Augusto Beato

November 23, 2018Ikea Proves that E-commerce Can Boost Employment, Asserts Augusto Beato

November 19, 2018Augusto Beato Recommends a Tailor-Made Omnichannel Approach for Retailers