Last Mile Opportunity In Korea
Increasing e-commerce demand requires more logistics centers for last mile delivery.
As the types and penetration of e-commerce diversifies, the use of logistics real estate is changing. Colliers’ expects new investment opportunities both in logistics centers near major cities and large suburban logistics centers further from the city center.
- The logistics and distribution market is changing to focus on delivering more products but a smaller volume of each. Companies should update their strategy and collaborate with companies specialized in last mile logistics infrastructure for these lower volume but multi-product transactions.
- Real estate investors should focus their interests in fourth-generation logistics technology to target B2C tenants, diversifying beyond traditional logistics tenants.
- We expect demand for city center logistics infrastructure to continue to grow, however securing appropriate licensing is difficult and restricts the supply of new logistics centers in urban areas. Investors should focus on redevelopment and integration of outdated small and medium-sized, logistics facilities.