• Home
  • About Us
    • Our People
    • KMC 10th Year Anniversary
  • Services
    • Transactions and Advisory Services
    • Landlord Representation
    • Investments
    • Research and Consultancy
    • Offshoring Corporate Services
    • Asset Management
    • Residential Services
    • Serviced Offices
    • Project Management
    • Hotels and Leisure
    • Retail Services
    • Valuation & Appraisal Services
    • Industrial And Logistics Services
    • Data Center Services
  • Resources
    • EpicSpace
    • Philippines
    • Case Studies
    • Testimonials
  • Research & Insights
  • Careers
  • Contact Us

KMC Header

KMC Savills
PH (+63) 2-8403-5519
[email protected]
  • About Us
    • Our People
    • KMC 10th Year Anniversary
  • Services
    • Transactions and Advisory Services
    • Occupier Services
    • Investments
    • Research and Consultancy
    • Offshoring Corporate Services
    • Asset Management
    • Residential Services
    • Serviced Offices
    • Project Management
    • Hotels and Leisure
    • Retail Services
    • Valuation & Appraisal Services
    • Industrial And Logistics Services
    • Data Center Services
    • Hub and Spoke
  • Resources
    • EpicSpace
    • Philippines
    • Case Studies
    • Testimonials
  • Research & Insights
  • Careers
  • Contact Us
Inquire Now
List your property

KMC Savills | What Is Last Mile Delivery in Industrial Real Estate

https://kmcmaggroup.com/research-insights/2021/ph-industrial-real-estate-what-is-last-mile-delivery/
KMC,KMC Savills,Industrial Real Esstate,last mile delivery,last mile hubs,warehouses,warehouosing,logistics,delivery,ecommerce,
KMC Savills | What Is Last Mile Delivery in Industrial Real Estate

KMC Savills | What Is Last Mile Delivery in Industrial Real Estate

KMC Savills

Posted on Friday, September 3, 2021 Monday, December 20, 2021
  • Home
  • Research & Insights
  • 2021
  • PH Industrial Real Estate: What is ‘Last Mile Delivery’?
KMC Savills | What Is Last Mile Delivery in Industrial Real Estate

The global industrial real estate market has been keeping up with the boom of e-commerce in the new normal. As this industry continues to revolutionize business processes and systems, companies find new ways to meet consumer demand and expectations.

As the e-commerce industry drives most economies, new technologies and experimental supply chain models emerge to increase parcel volume, expedite deliveries, and keep pace with the local and international demand.

What is Last Mile Delivery?

Last mile delivery refers to the final step of the shipment and delivery process before the commodities, goods, and products reach the receiver. While international or local large warehouses, industrial facilities, and regional distribution centers are considered the “first miles” of distribution, last mile represents the delivery to a retailer or the purchaser’s address.

To increase efficiency and avoid delivery delays, last mile delivery limits multiple stops with low drop sizes. Last mile delivery often involves the movement and transportation of smaller parcels along multiple routes across borders, cities, towns, and localities. These facilities are located in urban and rural areas that distribute goods via multiple channels and along several routes.

READ MORE: Philippine Industrial Real Estate: Rising Demand For Warehouse, E-Commerce Boost Amid COVID-19

Despite the global health crisis, last mile delivery assisted in the expansion of businesses across the Philippines. From a predominantly B2B set up, the boom of e-commerce has led the local logistics and warehousing industries to prioritize and start providing B2C options into their pipeline.

Regional Warehouses

This demand also increased the need for warehouses located in key locations in the Philippines, especially those outside of its capital. Last mile delivery has supported the steady boost to the country’s industrial real estate sector as more multinational companies locate to warehouses, especially in rural areas in the Philippines.

According to KMC’s Industrial and Logistics Report, an increase in e-commerce spending this year is projected to ramp up the demand for warehouse space, including key locations outside the country’s capital.

RELATED: Omnichannel E-Commerce Continues To Drive PH Industrial Real Estate

One of the drivers of e-commerce growth is the untapped market in rural areas. Last-mile hubs and logistics facilities continue to tap rural markets outside city centers to deliver consumer goods and retail products in harder-to-reach areas in the Philippines. More industrial space outside NCR is expected to be available as land and property owners take advantage of the shifting consumer behavior.

According to a report by Savills, last mile delivery will continue to influence the trends in industrial real estate, as well as logistics, and transport of goods. Many technologies are also being developed to support its increasing demand across the globe.

“With new transport technologies serving demand for last minute, last mile delivery, logistics companies will continue to make up a greater share of users of higher-value land,” says de Marcus de Minckwitz, Director, Omnichannel Group of Savills.

Want to know more about this emerging trend in industrial real estate sector? Connect with Mack Filio at (+63) 917-816-2952. You may also call us at (+63) 2-8403-5519 or send an e-mail to [email protected].

 

View all articles

Written by

Mack Filio
Mack Filio
Assistant Manager for Transactions and Advisory Services
TAGS:
  • KMC
  • KMC Savills
  • Industrial Real Esstate
  • last mile delivery
  • last mile hubs
  • warehouses
  • warehouosing
  • logistics
  • delivery
  • ecommerce

Latest Posts

3 Reasons Why Malate Manila is the Ideal Area for Manpower Agencies

Thursday August 11, 2022

A Testament to How Resilience Triumphs over Adversity: Manta Corporate Plaza launches in Arca South

Monday August 8, 2022

5 Reasons Why the Philippines is the Ideal Data Center Hub in Southeast Asia

Wednesday June 29, 2022

The Rise of Neighborhood Malls: How Malls are Changing in the Post-pandemic Era

Wednesday August 3, 2022

KMC Contact Us

How can we help?

KMC is an award-winning real estate services company. Headquartered in Bonifacio Global City, with over 150 employees involved directly in transactions for tenant representation, landlord representation, investments, and residential services.

We are recognized as the Best in Class Real Estate Agency in the Philippines and an exclusive international affiliate of Savills – a leading global real estate service provider listed on the London Stock Exchange (SVS: LSE). This provides the firm and its clients access to a global network of over 700 offices and 30,000 real estate experts throughout the Americas, Europe, Asia Pacific, Africa, and the Middle East.

Learn more

KMC Newsletter

Sign up for the latest Research & Insights

Get in Touch

(\+$I63,) 2+P\-XU;84€0C#3/\-5Q5-1=9DV [email protected]

Follow Us

KMC Footer

KMC Savills
DISCLAIMER: The information, photographs, images, landscapes, floor plans and the like contained on this website are for general information and illustrative purposes only. Credit remains to the owner of the photographs and images. KMC does not claim ownership, income, control and use of the photographs and images and does not assume responsibility for any kind of damages (direct or consequential) in relation to the use of such information, photographs and images on this website.
© 2021 KMC. All rights reserved. KMC is the leading real estate services firm in the Philippines.
Terms of Service • Privacy Policy
Monday: 09:00:00 - 18:00:00
Tuesday: 09:00:00 - 18:00:00
Wednesday: 09:00:00 - 18:00:00
Thursday: 09:00:00 - 18:00:00
Friday: 09:00:00 - 18:00:00