A new report
Retail & Logistics Insights – From Sheds to Shelves,
by Colliers International has said that the future
of drone deliveries may be at risk due to soaring property costs and calls from
the European Commission for tighter regulation.
rising rents and increasing complication of airspace regulation drones may
become more trouble than they’re worth,” said Tim Davies, head of EMEA
industrial and logistics at Colliers International.
As more sales are
conducted online, there is a growing need for local delivery hubs to ship goods
Analysis in the report
has shown that industrial property has outperformed all other types of
commercial real estate. Demand for space from companies like Amazon has seen a
reversal of fortunes for the sector with values now rising. Costs for last mile
deliveries will be driven by land constraints around cities such as London,
where other uses such as housing often receive greater political support.
While property costs
make moving goods around more expensive, it is like to be regulation that
creates a real barrier for drone deliveries. The European Commission said last
year that it wanted further regulation on commercial drones that would apply
across the EU.
specified that further regulation would be needed to prevent issues with
safety, privacy and data protection.
Worries around privacy
for residents, businesses and public bodies in the flight path of commercial drones
carrying recording devices have led to worries around national security and
breaches of privacy as well as noise pollution.
Head of EMEA industrial
and logistics, Tim Davies, predicts that increasing anxiety over the place of commercial
drones within airspace regulations could scupper plans for a high-tech delivery
“The report suggests that retailers may instead be looking
to better utilise existing modes, such as London’s increasing network of Uber
taxies or in-store collection,” explained Paul Souber, Head of Central London
in 2013 that deliveries in selected areas would be carried out by commercial drones
from 2015 sparked mass excitement about a deliveries ‘space age’. But as of
yet, it hasn’t managed to get off the ground.