Last Mile
The final leg of delivery from a distribution point to the end customer, driving demand for small industrial spaces close to population centers.
Definition
Last mile refers to the final stage of the delivery process—moving goods from a local facility to the customer's doorstep. The growth of e-commerce and same-day delivery expectations has increased demand for small industrial spaces positioned close to residential areas. These facilities serve as local delivery hubs, often operating with van fleets rather than semi-trucks. While dedicated last-mile facilities are typically larger than traditional small bay (10,000-50,000 SF), the trend benefits small bay properties by increasing overall demand for well-located industrial space and attracting complementary tenants like delivery contractors and small fulfillment operators. Last-mile demand favors infill locations near population density over remote industrial parks.
Example
A courier service leases a 5,000 SF unit in a small bay property near a suburban population center. They use it as a local depot where drivers pick up pre-sorted packages each morning for residential delivery routes, reducing drive time compared to operating from a regional distribution center 30 miles away.