Vertical Logistics Parks: How Are They Shaping the Future of Logistics and Fast Deliveries in Mexico?

Last Mile Vertical Logistics Parks or warehouses represent a solution to streamline deliveries and reduce operational costs in the industrial sector. These storage spaces optimize space usage and are strategically located, ensuring deliveries in less than 24 hours while significantly contributing to reducing the carbon footprint through sustainable technologies.

The Last Mile Vertical Logistics Parks of Interlogix are characterized by their efficiency and sustainability. Photo: Interlogix

By: SiiLA News

01/16/2024

The logistics and storage sector in Mexico is undergoing a significant transformation, and a key driver of this revolution is the emergence of vertical logistics parks. These remarkable spaces are rising in response to the need for greater efficiency in supply chains and the growing demand for fast deliveries, particularly in densely populated areas where space is limited and costly. According to Eduardo Neuman, the CEO of Interlogix, a prominent real estate developer specializing in Last Mile Vertical Logistics properties in partnership with Prologis, these spaces not only save time and money but also offer an intelligent solution to reduce the environmental impact of the industrial sector.

At first glance, the difference between a vertical and horizontal warehouse might seem akin to that of a tower versus a single-story building. In other words, spaces that extend in a single plane versus buildings with stacked levels. However, there's more than meets the eye.

A vertical warehouse complex or vertical logistics park is a storage facility designed to streamline product distribution in the final stage of the supply chain. Its purpose is to reduce delivery times and distances, so they are often strategically located near distribution points in prime locations. The tenants of these properties employ cutting-edge technology, such as automation and robotics systems, to optimize inventory management and reduce operational costs. This results in increased logistical efficiency, greater storage capacity, and a more sustainable approach.

Despite their efficiency and flexibility being rooted in space optimization and strategic locations, what truly sets vertical logistics parks apart is their ability to handle large-scale operations with constantly growing order volumes, enabling rapid product access and deliveries within 24 hours.

Furthermore, by maximizing the verticality of the buildings and utilizing energy-saving technologies, these logistics parks can significantly contribute to reducing the industry's carbon footprint. Closeness to urban centers and the ability to make quick deliveries lessen the need for long-haul trucking, thereby reducing greenhouse gas emissions and traffic congestion.

Challenges in Constructing Vertical Logistics Parks in Mexico

The internal layout of an Interlogix facility in Mexico. Photo: Interlogix.

Eduardo Neuman, leading Interlogix, spoke with SiiLA about the challenges and prospects of developing vertical warehouses in Mexico. Currently, Interlogix is developing more than five properties in Mexico City and plans to have around 125,000 cubic meters of warehouse space by the end of 2024 and another 250,000 cubic meters by the end of 2026.

Since Interlogix's developments are built from scratch rather than adapting pre-existing spaces, their design involves a particular degree of complexity, especially in logistical aspects such as calculating maneuvering yard sizes, turning radii for various types of transportation, slab load capacity (one ton per square meter on all levels), space for forklifts, gate and dock sizes, as well as the height between floors to facilitate loading and unloading of any vehicle. This also includes the incorporation of high-speed elevators with a two-ton load capacity.

In addition to these challenges, Neuman explained that there are several construction restrictions in Mexico City. Instead of developing 750,000 cubic meter vertical logistics parks in 25 levels, as has been done in Asia for over two decades, they develop properties ranging from 15,000 to 30,000 cubic meters that can be subdivided into smaller spaces to meet each client's needs.

Sustainability is a significant factor for Interlogix. Apart from being in last-mile or in-fill locations to reduce the carbon footprint associated with freight transport, Interlogix's vertical logistics parks incorporate sustainable technologies such as solar panels, LED lighting, and rainwater harvesting and reuse.

Regarding technological innovations in building design and construction, Neuman highlighted the use of increasingly advanced materials that allow for more efficient and cost-effective constructions with improved weight, strength, durability, and cost characteristics. Interlogix also uses systems that facilitate the creation of more efficient designs and structures, speeding up project processes, minimizing errors, and optimizing investment.

Vertical logistics parks are changing how storage and supply chains are managed in Mexico. They optimize space, bring products closer to end consumers, and contribute to environmental sustainability. With the growing demand for fast and efficient deliveries and the evolution of technology and process automation, we are likely to see continuous growth in this trend in the real estate and logistics market in Mexico and globally.

If you want more information on this and other topics related to commercial real estate, explore SiiLA REsource or contact us at contacto@siila.com.mx. To get in touch with the Interlogix warehouse marketing team, please contact Jose Luis Villar (joseluis.villar@colliers.com) and Daniel Miranda (daniel.miranda@colliers.com), or visit their website www.interlogix.com.mx.

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