Wednesday, October 16, 2019
Demand and Prices Increase for Smaller Warehouses
Availability for well-located, small light-industrial properties between 70,000 and 120,000 square feet has fallen 4% to 7.4% over the past five years, raising rents by 30%. Ecommerce is driving the demand, as companies look to store inventory close to their customers to cut down on delivery times. By comparison, the rents for warehouses over 120,000 square feet only grew by 16%.
Walmart Offers Last Yard Grocery Delivery
Walmart launched its InHome grocery delivery service in select U.S. cities this week, moving into last yard delivery. The service delivers groceries directly into customers’ refrigerators using a smart lock system, and will eventually incorporate a returns service, where customers can leave unwanted items on their kitchen counters for pickup.
Logistics Industry Report Shows Slow Growth
The latest Logistics Manager’s Index (LMI) report showed that September’s growth rate was even with August’s at 56.6, but was down from September 2018’s 70.8. Warehousing capacity also increased for the first time since June, indicating peak season preparation, while transportation prices are expected to increase over the next year.