ATLANTA—The higher cost of locating e-commerce fulfillment centers in urban infill areas is more than offset by the logistics savings achieved by having good proximity to large population centers. That was one of the opinions offered by a panel of industrial developers and construction executives during NAIOP’s E.CON.
“Companies more and more are interested in getting products out the door with same-day delivery,” says Stan Conway, executive vice president, Majestic Realty. “Logistics costs dwarf the land costs, especially with traffic getting worse every day. Most of these deals are ready to roll and controlled infill is the key component. These guys will pay more to be in these top locations.”