The last mile is the most expensive part of every delivery — and the space that makes it possible is among the scarcest goods of the urban economy.
Why the scarcity is structural
Urban logistics competes with every other use for the same plots — and politically it usually loses to housing. At the same time, demand grows with every percentage point of e-commerce and with rising service expectations. The result is a permanently tight market in which existing space gains value without new construction replacing it.
Location quality, re-read
In logistics, location means something different than in office: connectivity, loading access, clear height, permits for night operation. Whoever evaluates these criteria systematically recognises space whose potential is underestimated in existing stock — for example older commercial assets in inner-urban transition zones.
Signals for investors
Lease lengths, space turnover and users’ willingness to invest in fit-outs reveal much about a location’s stability. Where users invest themselves, they plan to stay — often the most honest signal in the market.
The essentials
- Urban logistics space remains structurally scarce.
- Location quality here means connectivity, access, operations — not address.
- User investment is the most honest signal of stability.
This article is part of KI Forum’s independent research program. It reflects general market observations and does not constitute investment, legal or tax advice.