When shopping malls make way for logistics

Will logistics facilities take up increasing space in shopping malls? The question arises following two recent announcements. First, Unibail-Rodamco-Westfield and FM Logistic inaugurated at the end of 2021 at the Westfield Vélizy 2 shopping mall a station enabling the collection of small parcels, bulky items, and groceries. The system is intended for the mall’s retailers, as well as external brands looking to offer “an innovative solution to address the challenge of last-mile logistics.” A few weeks later, LaSalle Investment Management leased 1,200 m² of storage and technical space to Chronopost at the Place des Halles shopping mall in Strasbourg, to create a space dedicated to last-mile logistics.

“More than a broad-based trend, these projects are opportunities seized by professionals for last-mile logistics,” observes Erick Schiller, Head of the Urban Logistics Department at Arthur Loyd Logistique. As a result, no standard has yet emerged for the technical characteristics of these spaces, and the players occupying them have varied profiles: from cargo-bike operators handling the final hectometer to express grocery-delivery providers and established industry professionals. Location quality nevertheless stands out as the common denominator across the various projects: “Operators are setting up in shopping malls that enable them to complete their logistics network, whether in city centers or on the outskirts of densely populated cities,” explains Erick Schiller. And this may only be the beginning, if trends observed abroad are any indication.

The United States is a pioneer in establishing logistics facilities within, or even in place of, shopping malls. “Many players are looking at ways to transform dead malls, these large complexes that have been left abandoned, notes Erick Schiller. Amazon Logistics is leading the way on this issue. ” In Europe, the United Kingdom made the shift several years ago. For example, at the end of 2019 Prologis acquired a shopping mall in North London to turn it into a logistics complex. Beyond the economic dimension, renovating these buildings, which have often become obsolete, also has environmental benefits.

France cannot say the same for now, partly because of its regulations. “The laws in force in our country do not allow a shopping mall to be converted overnight into a logistics facility, for example to establish facilities classified for environmental protection (ICPE), which require a minimum distance from nearby homes,” notes the Arthur Loyd Logistique executive. In his view, the creation of standards for urban logistics in France will paradoxically come through… regulation: “It will define the dimensions of these spaces and the activities they can accommodate, vehicle energy supply, requirements relating to the movement of goods within them…”. It will then be easier for new entrants and established logistics professionals to position themselves on retail assets that meet this new classification. In the meantime, other avenues should be explored in France. Demolition-and-rebuilding projects are among the possible options.

After considering for several years the development of a retail complex on a former brownfield site in Marseille’s La Valentine district, Frey, a real estate company specializing in the development and operation of open-air shopping centers, is now examining the possibility of developing a last-mile logistics hub of more than 20,000 m2.

Others are taking a close look at parking lots: “Institutional investors that own shopping malls with numerous parking spaces are considering converting some of them into last-mile logistics facilities in order to create additional value,” Erick Schiller observes in several countries. France should not lag behind on this issue, as pilot projects are already underway, such as the partnership between Paris La Défense and Sogaris to adapt obsolete roadways and parking facilities for urban logistics.