Are E-commerce Fulfillment Centers Valued Differently Than Warehouses And Distribution Centers?

October 21, 2015

New Report by the NAIOP Research Foundation

WASHINGTON, D.C. – October 21, 2015 – (RealEstateRama) — Are fulfillment centers distinct real estate products? Some in the industry believe they are; others believe they are not. According to the results a new report published by the NAIOP Research Foundation, fulfillment centers are not significantly different from nor significantly more valuable than other types of warehouse and distribution facilities.

This study is among the first to explore this question. It uses a unique research design that lays the groundwork for practitioners, consultants, academics and others to build upon in future studies. It identifies a sample of 371 e-commerce fulfillment centers by combining information from Internet Retailer’s Top 500 Guide and CoStar databases.

Given the steady increase in online shopping that has occurred since 1994 — when Amazon launched its Internet bookselling business — purpose-built e-commerce fulfillment centers will continue to be constructed. Understanding the place of pure e-commerce fulfillment centers among all types of industrial structures is especially important to developers, tenants and investors as they assess development costs, lease terms and valuations.

Download the full report, written by Dr. Jonathan Wiley and funded by the NAIOP Research Foundation.