The Last Mile: the Western Phenomenon, Placing the Most Sought-After Warehouses in the City

In big cities in the USA, England, and Germany, the most hunted industrial spaces are the logistics spaces inside the city as close as possible to the end consumer of e-commerce (online sales) and delivery companies, called last-mile

The battle for these deposits is between Amazon and the delivery companies (such as UPC, FedEx) that deliver for their competition, all other major retailers on the market, who want to bring the products as soon as possible – in a few hours or maximum one day. 

This race against the clock can be won only if the most requested products are already in small warehouses, in the heart of the city, which leads to a lot of pressure on the market segment of industrial spaces in the city, at all key points, where the most extensive urban agglomerations are, according to an analysis made by SIOR (SOCIETY OF INDUSTRIAL AND OFFICE REALTORS®)

 In London, rent of last-mile, proximity deposits have risen by 20-30%. In the last three years, the highest demand for such spaces comes from Amazon, which delivers the products within a few hours of placing the order on the site.

For good spaces in London, rents of 18 euro/sqm/month are also practiced, a tariff per sqm closer to that of the office market, than that of industrial spaces, due to low supply.

As solutions to increase the supply of last-mile spaces, these proximity deposits, SIOR specialists identified the construction of multi-stored spaces to be competitive with residential developments, but also the reconversion of some commercial spaces or unused common spaces in some residential complexes.

“In Romania, for now, we have an inverse phenomenon, the removal of deposits from the city, as a result of current legislation, but there will come a time when competition between online sales companies (from computers to consumer products) lead to an increase in demand for such last-mile spaces. Those who will secure the best locations as soon as possible will benefit from the highest delivery speed “, estimates Alexandru Petrescu, Managing Partner of ESOP Consulting at CORFAC International.

Jokingly or not, the american real estate analyst Norm Khoury says, “Amazon will surround us.”

If you would like more information about the industrial spaces for rent in Bucharest and Ilfov, please contact the ESOP team by filling this brief form, or by phone (+4) 0723.26.61.97 or (+4) 021.528.04.40. We’ll promptly answer your inquiry!

Photo source:

Alexandru Petrescu

Founding Managing Partner of ESOP Consulting | CORFAC International with 21 years of experience in real estate consulting and entrepreneurship.

0% Tenant fee!
1.500 - 37.000 sqm

Global Logistics Park Chitila

Chitila, București Ilfov
  • 3,70 - 4,50€/sqm, negotiable
0% Tenant fee!
924 - 100.000 sqm

P3 Logistic Park

Ciorogarla, București Ilfov
  • 4,10€/sqm, negotiable
0% Tenant fee!
5.888 - 17.818 sqm

WDP Industrial Park Dragomiresti

Dragomiresti-Vale, București Ilfov
  • 4,25€/sqm, negotiable
0% Tenant fee!
1.000 - 12.000 sqm

NGB Distribution Center

Bragadiru, București Ilfov
  • 3,75€/sqm, negotiable

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