How does last-mile connectivity affect logistics park valuations?

Last-mile connectivity significantly affects logistics park valuations because efficient final-stretch delivery access to urban consumption centers directly impacts operational cost and speed, making well-connected parks command higher rents and stronger long-term appreciation.

Why Last-Mile Connectivity Matters

• Reduces delivery time and transportation costs to end consumers.
• Improves efficiency for e-commerce and quick-commerce fulfillment operations.
• Enhances reliability of supply chains dependent on tight delivery windows.

Factors Influencing Last-Mile Efficiency

• Road quality and traffic congestion levels near the logistics park.
• Distance to dense urban or suburban consumption clusters.
• Availability of multiple route options to avoid bottleneck dependency.

Impact on Valuation and Demand

• Well-connected parks attract premium rents from e-commerce and 3PL tenants.
• Poor last-mile access can lead to higher vacancy despite good highway proximity.
• Investors increasingly price in last-mile efficiency during asset valuation.

last-mile connectivity has become a critical valuation driver for logistics parks, often outweighing simple highway proximity in today's e-commerce-driven demand environment.