Just when you thought they had been consigned to history, warehouses in the city are once again seeing a rise in demand as online retailers are pressured into delivering next day and on time.
Far from spelling the end of the out of town super warehouse, the new breed of smaller urban warehouses will be an important step on the journey a product takes to get to the purchaser’s address.
Even with today’s sophisticated storage and delivery technology, it is still a stretch for companies to be able to deliver at specific times without any delays. So having an urban warehouse on the spot where goods can be quickly transferred in the locality will speed things up a lot.
Amazon once again are the ones blazing a trail in recent years when they introduced a small network of warehouses to London in 2013 and there are plans for further expansion in US cities to go with the 19 urban warehouses it already has.
The move towards urban warehouses is sure to make an interesting investment proposition as land prices are already sky high in cities like London. It may also put pressure on the development of residential property, which ironically has benefitted from the conversion of old 19th Century warehouses into trendy loft apartments.
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