Last-mile facilities have been anecdotally hot. A new five-year review from Avison Young puts data behind the inklings.
The market is popular. The Avison Young review mentions a Wealth Management Real Estate 2022 survey that found "52% of respondents noted last-mile warehouses as the most coveted segment of the industrial market," a shift from previous versions of the survey where respondents preferred more traditional locations.
A couple of reasons come to mind for the shift. One is that traditional industrial space has become highly competitive. The properties focus on larger tenants that want the most modern designs and facilities to accommodate automation and robotics. Smaller infill spaces are in heavy demand but are also smaller, and so possibly seen as more affordable investments.
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