As e-commerce continues to reshape the global economy, the demand for quick and efficient delivery has never been higher. In fact, a recent study found that over 85% of consumers expect delivery within two days of purchasing a product online. The COVID-19 pandemic acted as a catalyst, supercharging an already thriving sector. What was once a competitive edge in 2019 has now become a non-negotiable requirement: proximity to end consumers.
To meet this need, e-commerce providers are increasingly seeking distribution centers close to major population centers—where logistics space is limited but essential. Proximity to the end consumer is also important to help e-commerce providers minimize transportation miles, saving them costs and reducing transport emissions.
We keep a pulse on market trends and consumer behavior so that we can stay ahead of the curve, including ensuring that we are always positioned in the world’s largest consumption hubs.
Joseph Ghazal, Prologis’ Chief Investment Officer, highlighted this strategy at our recent Investor Forum, saying, “Our focus is to deliver the right product in the right location. We have built an irreplaceable land bank with a disciplined investment strategy, and we are constantly optimizing our portfolio. In fact, our clusters in submarkets have more than doubled since 2015, in alignment with the movement of distribution centers closer to city centers.”
Our scale, market knowledge and team capability fuels success for our own business and that of our customers.
Prologis President Dan Letter on the ongoing strength of the e-commerce segment and the growth of our global land bank: “E-commerce has been incredibly strong. We are taking advantage of the market. We’ve uncovered all sorts of exciting opportunities in various markets around the globe, and we’re thrilled about our acquisition volume for the year ahead.”
Recognizing the challenges posed by land scarcity and rising property prices, particularly in urban environments, we are also innovating with multilevel warehouses. These facilities are a game-changer in larger cities where land is at a premium and consumers demand same- or next-day delivery. Since building the first U.S. multistory warehouse in Seattle in 2018, we’ve expanded this approach with successful projects in Miami and New York. We continue to lead the way in acquiring and developing land in global gateway markets, ensuring that our customers have access to the critical last-mile solutions they need. We call this essential service Last Touch®, and it’s just one way we’re supporting the e-commerce supply chain.
Discover more about Last Touch® and how Prologis is driving the future of e-commerce logistics across the globe.
