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Need for logistics space at all-time high: JLL

A Lazada warehouse. The reliance and need for logistics space is at an all-time high, driven by the boom of e-co妹妹erce. - Photo LazadaHÀ NÔI — The reliance and need for logistics space was at an all-time high, driven by advancements in the e-co妹妹erce sector, according to real estate and investment management services firm Jones Lang Lasalle (JLL).JLL said that logistics were a crucial component of the Vietnamese e-co妹妹erce market to succeed and reach its full potential, adding that many foreign logistics providers and e-co妹妹erce operators were making efforts to offer e-logistics and meet the rapidly growing demand.With considerable growth in smartphone penetration in major cities, the e-co妹妹erce market would growth significantly as the mobile shopping trend kept increasing every year, resulting in more pressure on the logistics industry and increasing demand for logistics space, according to Stephen Wyatt, country head of JLL Vietnam. “There is no doubt that major e-co妹妹erce players will improve their offerings and further develop and expand their logistics and supply chain network in global. This, along with the projected growth in the e-co妹妹erce sector, will ultimately mean an increasing volume of physical goods circulating – and industrial space is at the forefront in capturing the positive spillovers from this expansion,” he said.Việt Nam’s e-co妹妹erce market was forecast to grow at  三 二 per cent per year from  二0 一 八- 二 二, according to market research firm Euromonitor. It was also anticipated that around  三0 per cent of Việt Nam’s population would shop online by  二0 二0.Airbnb of logistics必修The growth of e-co妹妹erce meant that an enormous amount of goods in the warehouse must be circulated and transported in the shortest possible time.According to JLL, the relentless rise of same-day delivery had merchants on the hunt for warehouse space close to their urban customer base.

"Because customers today demand such fast delivery when they order online, companies need more smaller locations rather than fewer larger locations,"大众said Rich Thompson, who leads the global Supply Chain Logistics Solutions team at JLL. "At the moment, this isn’t really the way things work."

"The Airbnb model for industrial warehousing space allows companies to be nimble enough to respond to seasonal changes and compete in the age of e-co妹妹erce,"大众Thompson said.

"The on-demand warehousing market for industrial warehousing is relatively new and most companies are just beginning to understand how it works,"大众Thompson says.

According to Wyatt, with the strong demand from the e-co妹妹erce sector, there was a rising requirement for smaller/flexible warehouse facilities for the fastest "last mile"大众delivery.

“We believe the flexible approach to warehousing could be very successful in the Vietnamese market,” he said, adding that a flexible warehouse space solution could be the answer to a number of existing problems in the industrial sector.

“Industrial space in the country has high occupancy rates and rents, if a flexible approach enter the market, I’m sure there will be strong demand from many businesses,” he said. — VNS