Explore the latest strategic trends, research and analysis At a time of slowed growth and continued volatility, many countries are looking for policies that will stimulate growth and create new jobs. Information communications technology ICT is not only one of the fastest growing industries — directly creating millions of jobs — but it is also an important enabler of innovation and development. The number of mobile subscriptions 6.
Infrastructure and Its Role in the U. Economy But, if accommodating growth was the only issue, retailers would simply expand existing regional distribution centers in areas where land is relatively inexpensive and readily available. First, it was two-day delivery, then next-day delivery, and now same-day delivery.
Everyone in the market must adapt to these changing expectations or risk losing market share. The only way to meet these expectations is to move products closer to large groups of consumers.
In addition, there is the challenge of reverse logistics. Return rates for in-store purchases average less than 10 percent, while e-commerce return rates can be 30 percent or higher.
The challenge is not only how to get returned goods back from the consumer but how to do so without destroying all of their economic value. One solution is the development of small, dedicated sites where consumers can return goods more efficiently.
Those factors are driving e-commerce companies and their 3PL partners to increasingly supplement their network of regional distribution centers with smaller, satellite facilities capable of reducing lead times and providing greater flexibility and service consistency. These new facilities are much more about product movement than product storage and so have different requirements than traditional warehouses.
In some areas, such as the U.
The multi-story industrial real estate phenomenon is still in its infancy in the U. These are basically very fast-moving shipment facilities. They are relatively small buildings on a low-density site with a lot of parking for vehicles, and a lot of docks for the trucks that come in and the delivery vans that go out.
This trend has now expanded from the Far East to the U. At a point it becomes economical to look at developing on a multi-level basis so that you can actually justify the high land values that are being demanded.
It translates to a need for transformation, including inner-city warehousing capabilities and a new design approach.
The Impact on Real Estate While there are some differences in the design of urban distribution centers in different parts of the world, there is consensus on their impact. For example, in New Jersey, during the last five years the average lease went from about five years to around eight years.
The relevance of that is profound. There is a shift under way in the definition of what constitutes institutional-grade industrial real estate, which previously was confined to properties like large warehouses and distribution centers.
In urban centers, that is driving up demand, prices, and the length of leases. His team is responsible for all real estate development, acquisitions, and dispositions for DHL Supply Chain. During this period, he has been involved with over 60 million square feet of industrial transactions.The impact of e-commerce developments on consumer welfare — Information disclosure regimes Jennifer Hamilton* and Lorna E.
Gillies Received (in revised form): 12th August, The impact of e-commerce developments on consumer welfare.
E-commerce. September Help – I think I’m in an abusive relationship with Alexa. Emma Brockes There’s an emotional cost to bonding with devices, says the Guardian columnist Emma Brockes. The Surprising Impact of E-Commerce on Urban Real Estate Markets Distribution is moving closer to end customers, and that means more distribution centers in urban environments.
Joe Mikes, Head of Real Estate Solutions, Americas, DHL Supply Chain.
E-commerce and Development Key Trends and Issues Torbjörn Fredriksson Chief, ICT Analysis Section E-commerce usage increases with the size of the business Main benefits from e-commerce sales Reduced transaction time Limited impact of e-commerce due to.
The rise of e-commerce dominates retail headlines—however, what is its impact on logistics real estate? To address this and other questions, we analyzed the industry’s growth, examined fulfilment strategies and studied e-commerce customers’ latest leasing trends.
Keywords: E-commerce, impact of IT, unbundling, execution quality. + Affiliations: Bakos and Simon are at the Stern School of Business, New York University; Lucas and Viswanathan are at the Robert H.
Smith School of Business, the University of Maryland, Oh is on the faculty of Management at.