Last-Mile Facilities Popping Up Near Major US Cities

Gateway North Business Park is a 20-acre park developed by Conor Commercial Real Estate.

HOUSTON—Last-mile distribution centers–sometimes called “last touch” centers–generally are the final point of distribution for goods before arriving on customers’ doorsteps, though the distance from the distribution center to the customer often is more than a single mile. Last-mile distribution facilities for e-commerce are popping up in close proximity to the population centers of major US cities, creating a foundation for rapid-delivery service that didn’t exist on this scale as recently as a few years ago, according to a new report from CBRE. Some might characterize this as the Amazon effect.

“These close-in fulfillment centers have proliferated within the past two years, underscoring the need for retailers to have large batches of inventory within 10 miles of most of their customers so they can fulfill orders as rapidly as possible,” said David Egan, CBRE global head of industrial and logistics research. “This is an entirely new link in most supply chains that delivers on the promise of fast, super-high-performance delivery.”