{"id":1004134890,"date":"2016-01-28T07:54:10","date_gmt":"2016-01-28T15:54:10","guid":{"rendered":"https:\/\/www.commercialsearch.com\/news\/?p=1004134890"},"modified":"2022-12-04T16:58:09","modified_gmt":"2022-12-05T00:58:09","slug":"the-last-mile-retail-responds-to-a-need-for-speed","status":"publish","type":"post","link":"https:\/\/www.commercialsearch.com\/news\/the-last-mile-retail-responds-to-a-need-for-speed\/","title":{"rendered":"The Last Mile: Retail Responds to a Need for Speed"},"content":{"rendered":"

By Steven Bandolik and Michelle Kerrick<\/p>\n

\"Steve<\/a>

Steven Bandolik<\/p><\/div>\n

In the December issue of CPE, we discussed a macro trend from our report, \u201cCommercial Real Estate Redefined<\/a>,\u201d that could prove to be a serious industry disruptor: the so-called \u201clast mile.\u201d As 2030 inches closer, we believe that new technology, consumer preferences and demand for speedy delivery will significantly impact last-mile connectivity, as well as the demand for both industrial and retail real estate. Don\u2019t underestimate the importance of this trend to the future of your business; for instance, institutional investors have already shown that they prefer assets that support last-mile delivery to more conventional industrial and retail spaces.<\/p>\n

Now let\u2019s take a closer look at the instigators of disruption and how CRE executives can best prepare their businesses for what\u2019s ahead.<\/p>\n

Changing Channels<\/strong>
\nCurrently, the push to create experiential retail is driven primarily by increased growth of online sales. That, in turn, is influencing the use of conventional brick-and-mortar stores as opposed to digital channels. Additionally, consumer interest in on-demand and tailored orders is generating experiments in manufacturing technology and site selection, while demands for next-day or same-day delivery are encouraging retailers to differentiate at the last mile.<\/p>\n

\"Michelle<\/a>

Michelle Kerrick<\/p><\/div>\n

In turn, technological advancements like 3D printing are helping meet the demand for custom products, which will enable manufacturers to move from a build-to-stock model to a build-to-order. Still other innovations, like drone delivery, are addressing the demand for faster, more convenient delivery.<\/p>\n

Despite the rise of online retailing, however, brick and mortar will remain integral for a variety of reasons. Some stores will serve as showcases for products that shoppers prefer to touch before buying, or that have significant service components.<\/p>\n

Others will bend to the store-in-store concept, while the remainder will shift to manufacturing, fulfillment and distribution centers, where size and location will be key. Smaller localized distribution centers will emerge due to on-demand retailing, the reduction of inventory and their ability to provide fast, efficient delivery.<\/p>\n

Winning Moves<\/strong>
\nTo get your business ready for this disruption, consider the following:<\/p>\n

    \n
  • Keep experimenting.<\/strong> Try a variety of store formats, tailored spaces, and innovative techniques to enhance the consumer experience. That, in turn, requires embracing sophisticated tools, such as radio-frequency identification (RFID) to optimize in-store inventory, or 3D printing to expedite custom orders. Meanwhile, continuously evaluate the number, location and size of stores, and consider converting non-strategic stores to fulfillment centers.<\/li>\n
  • Acquire and develop.<\/strong> Distribution and fulfillment centers should figure prominently in portfolios. That means buying and building smaller, more flexible spaces that meet the need for fast local delivery. Consider multi-tenant solutions to cut costs and enhance resources for manufacturers preferring to sell directly to consumers.<\/li>\n
  • Think location, location, location.<\/strong> For retail stores and distribution centers alike, the time-honored truism will be more important than ever. Companies should use geospatial technology and predictive analytics to identify strategic retail and warehouse locations, given the likely overlap in their use.<\/li>\n<\/ul>\n

    Steven Bandolik is a director with Deloitte Services L.P. and a senior leader in Deloitte\u2019s real estate services practice. A 30-year industry veteran, Bandolik provides advisory services in a wide range of business areas, including capital markets, corporate finance, mergers and acquisitions, investments, restructuring and reorganization, workout and asset recovery.<\/em><\/p>\n

    Michelle Kerrick is a partner with Deloitte & Touche LLP., and leads more than 1,600 professionals as head of the firm\u2019s Los Angeles practice. She has advised a diverse group of clients in multiple industries during her three-decade career.<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"

    How new technology, consumer preferences and demand for high-speed delivery will impact retail and industrial real estate\u2014and what CRE execs can do to prepare.<\/p>\n","protected":false},"author":1621,"featured_media":1004124931,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21684],"tags":[],"class_list":["post-1004134890","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-viewpoint"],"acf":[],"yoast_head":"\nThe Last Mile: Retail Responds to a Need for Speed - Commercial Property Executive<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.commercialsearch.com\/news\/the-last-mile-retail-responds-to-a-need-for-speed\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"The Last Mile: Retail Responds to a Need for Speed\" \/>\n<meta property=\"og:description\" content=\"How new technology, consumer preferences and demand for high-speed delivery will impact retail and industrial real estate\u2014and what CRE execs can do to prepare.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.commercialsearch.com\/news\/the-last-mile-retail-responds-to-a-need-for-speed\/\" \/>\n<meta property=\"og:site_name\" content=\"Commercial Property Executive\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/CPExecutive\" \/>\n<meta property=\"article:published_time\" content=\"2016-01-28T15:54:10+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2022-12-05T00:58:09+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2015\/08\/Steve-Bandolik.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1000\" \/>\n\t<meta property=\"og:image:height\" content=\"601\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Michelle Kerrick\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@cpexecutive\" \/>\n<meta name=\"twitter:site\" content=\"@cpexecutive\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.commercialsearch.com\/news\/the-last-mile-retail-responds-to-a-need-for-speed\/\",\"url\":\"https:\/\/www.commercialsearch.com\/news\/the-last-mile-retail-responds-to-a-need-for-speed\/\",\"name\":\"The Last Mile: Retail Responds to a Need for Speed - 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