Changing consumer habits to transform logistics

Changing consumer habits are to transform logistics in six key ways, according to new JLL research.

The research, “Logistics in London”, predicts that the logistics market will be impacted by the following:

• M-commerce (mobile phone and tablet purchases) will lead to a surge in online shopping during peak commuting times creating new pressures on deliveries.
• Deliveries of online purchases to offices will slowly become ‘out of bounds’.
• Landlords of large office developments will take a more proactive role in logistics planning and good practice.
• Online leisure spending will drive demand for new industrial uses.
• The shift in consumer spending to restaurants and hospitality will generate more demand for logistics space from suppliers to these sectors.
• Industrial land in London will be lost to leisure use as consumers continue to change their habits.

“From a logistics perspective, servicing London is becoming increasingly challenging and change is on the way,” said Andy Harding, lead director, JLL’s UK industrial & logistics group. “London is rapidly reaching a critical point where it does not have enough industrial stock to meet rising demand both from distribution firms but also leisure uses/operators.

“Several of the drivers of change highlighted in our research may result in relatively modest modifications to industrial land use but coupled with the loss of industrial land to other uses such as residential there will still be a tight picture in terms of supply.”

Jon Sleeman, lead director JLL’s EMEA industrial & logistics research, said: “The demand for land and transport infrastructure within London will continue to rise. Due to its size and diversity, London is often at the forefront of new concepts and innovations as businesses develop new projects to meet or generate consumer demand. This combination of size, diversity and innovation will generate challenges and also spark exciting new opportunities for logistics in London.”