News/Real Estate Finance

Real Estate Special: Atmosphere of innovation on the last mile

Deutsche Hypo study examines innovative approaches for urban logistics

Inner urban logistics is considered to be a future market segment and it offers a great deal of potential. This is the conclusion reached in Deutsche Hypo’s latest study titled “City Logistics – Last Mile Concepts”. The study also demonstrates that the logistics sector is undergoing a change. This development is being driven primarily by the online retail boom. Here, customers increasingly prefer the same-day delivery option or same-hour delivery for of shopping without having to pay additional costs for shipping and returns. These changes in consumer behaviour have resulted in growth in the demand for city logistics in order to be able to ensure “last-mile” delivery, according to the study.

“Parcel volumes have seen a rapid increase in recent years”, explains Sabine Barthauer, Member of the Managing Board of Deutsche Hypo. “Yet, the transport systems are currently still not dimensioned for the growth in goods traffic. Moreover, as a result of the increase in e-commerce there is a requirement for additional premises for distribution. However, these cannot be readily made available in view of the shortage of space that, in any case, exists in urban centres. Innovative solutions are being sought here”, according to Barthauer. Deutsche Hypo’s study highlights and discusses not only (re)utilisation options for existing spaces but also innovative forms of delivery as well as movable space concepts for last-mile deliveries.

Besides the existing growth opportunities for city logistics, the study also points out the challenges associated with these. These can only be met if urban logistics become more efficient, sustainable as well as quieter and the changes in customer behaviour are taken into account. For this it will be necessary to have close cooperation between all the logistics players and for the public sector to create the appropriate infrastructural and regulatory prerequisites.