Since online retail is growing, and there are not enough industrial buildings, people are forced to find new ways of storing items. Although the demand for big-box industrial space still exists in the urban fringe, the last mile warehouse is about getting all you need close to the customers. After all, you can refill it with trucks from your regional distribution center whenever you need it. Look for spaces in the thousands of feet in buildings that have similarly sized floor plates.

Your last mile warehouse does not need to be an industrial space. With a limited amount of available warehouse buildings, last mile users are now switching to whatever they can find. This means vacant big box retail space could be the best option for the last mile industrial needs.

The trend of repurposing retail to warehouse is not slowing down, and this makes sense for many reasons, such as:

1. There is more online retail than ever before. This means that third-party logistics providers like UPS, Amazon, FedEx, and other retailers realize they need more space to keep online orders. With that, more physical store closures are also taking place, signifying that now might be the perfect timing.

2. The industry is now open to change. These kinds of conversions have come a long way from unthinkable to highly attractive. We have now seen Big Box stores turn into everything from distribution centers to fitness centers.

3. Big Box retail space is much more available than distribution space. Due to the increasing number of online shops, many well-known retailers have been forced to close hundreds of stores. Those big boxes can now be difficult to fill with new tenants. On the other hand, the industrial market, which includes manufacturing space and warehouses, is at an all-time low.

4. The locations are perfect. Old retail space is usually found along major highways or streets that provide easy truck access. Although many shops are left because their neighborhoods are deteriorating, those locations are still within an ideal distance of big populations for next-day or even same-day delivery, making them perfect last-mile distribution centers.

5. It makes sense structurally. Standalone Big Box malls and stores can be a good fit for e-commerce distribution because they provide wide-open spaces, high doors for unloading and loading, and reasonable egress and ingress for trucks.

 Lastly, many retailers are already converting some of the space they have in their retail locations for last mile distribution centers.   Many retailers are recognizing that they may not need as much floorspace, so instead are converting the retail footprints to smaller spaces, while using part of the remaining space for distribution.

Do you need help understanding the last mile distribution options or how to attract retailers looking for last mile distribution? For more information, you can reach us at info@cbi-commercial.com.