Thursday, November 29, 2018

Former Urban Big-Boxes, Class-B Office Buildings Are Being Converted to Last Mile Industrial Space

NREI
The limited supply of urban industrial inventory available for “last mile” e-commerce distribution space is causing investors and end-users to get creative by repositioning other types of real estate with failed uses or shrinking demand, according to a JLL report, Urban infill: the route to delivery solutions.” The report notes that annual total e-commerce deliveries have more than tripled over the past five years, but development of new urban industrial infill assets has remained relatively flat.

Older office buildings, underused parking structures, abandoned strip centers—even former churches—are now among properties being repositioned as last mile fulfillment centers. . . . more