Disruptive Technlgies: Changing the Nature f Real Estate 2017 UNC Real Estate Cnference Ben Cnwell Senir Managing Directr Americas Leader ecmmerce Specialty Practice Grup April 6, 2017
Jeff B Isn t the Only Disrupter in NewCmmerce But AMZN is fr sure a tech leader 1
Drnes Will Never Wrk They ll Get Sht Dwn Yes, they re wrking n self-defense technlgies t 2
In-Stre Retail Re-Invented Mr. Sears and Mr. Rebuck wuld be amazed It s a mbile wrld. And a data-driven wrld. Leveraging f stres apps pushing f prmtins and tracking buying histry Beacning and recgnitin cnvenient, creepy r smewhere in between Technlgy cmes int the fitting rms Mbile check-ut Click & Cllect and Ship Frm Stre Nwhere as easy as it may lk Inventry management is imperative Redesign f the stre, shifting paradigms f merchandising Cnvenience vs. histric merchant gspel 3
Mre In-Stre Retail Re-Invented Driving nline transactins t tuch the stre Immediate custmer satisfactin Impulse purchases Amng the All-Stars: TGT, WMT, HD, Sears Frmer pure-play nline retailers discvering the pwer f a cmplementing physical presence Rise in mall-aggregated services: cmbined pick-up, returns Parking lt management slve a key custmer bjectin Technlgy/nline: nly a cntributing factr t the ver-supply f retail space 4
Key ecmmerce Disruptive Technlgies Vice recgnitin, rdering Stre is never clsed Single item rders vs. batched shpping All abut inventry allcatin Data rules Right selectin, in right place, at right time Sphisticatin f supply chain netwrk planning Material handling cnstant and rapid innvatin 5
Rbtics Nt Just fr Nerds Anymre Cming t a fulfillment netwrk near yu Fulfillment Rbtics Thrughput Fulfilled cst Labr Accuracy Scalability Amng ht names in the space Right Hand Rbtics Invia LcusBts Fetch Amazn Rbtics 6
Fulfillment Center Design Characteristics Yes big is cmmn, but innvatin and sphisticatin are key Clear height? 32, 36, 40, next? Evlving technlgy enabling mre users t capitalize n increased clear height Fire / life safety requirements Strage and prcessing mezzanines Pick mdules Extensive assciate parking areas, break and rest rms Massive truck and trailer curts, parking Interir climate cntrl Building management systems Last mile? 7
Delivery / Transprtatin UPS, FDX, USPS, 3PL, AMZN Crss-brder bm cming Explsin f last mile facilities t cmplete AMZN s vertically integrated delivery chain thers grwing t PrimeAir is just ne element AMZN running their wn brwn bxes tday, but will sn prmte t external parties Surge f emerging delivery services Deliv Shypt Pstmates Instacart 3 rd party lgistics prviders are becming answer t mst retailers fr nline fulfillment increased demand t services = increased demand fr space 8
Is This Yur Office r Apartment Building Mail Rm? Then may I suggest remte delivery? 9
Remte Delivery Cming Clser Yes big is cmmn, but innvatin and sphisticatin are key 10
Online Grcery Pster Child f Disruptin Ptential The Hly Grail f fulfillment Small penetratin t date High grwth acrss multiple demgraphics Hasn t taken ff faster because it s that difficult t execute let alne avid lsing mney n each delivery Mature industry, attracting significant speculative capital, significant new cmpetitive threats ripe fr explitatin? 11
Airbnb fr Warehuse Space? Applying marketplace technlgy t select warehuse needs Warehuse Partners Shipper Increase utilizatin & grw N new fixed cst Lw risk Streamlined Scalable Reduces frictin Enables cntrl Drives efficiency On-demand netwrk access N fixed csts Lw cmmitment Streamlined Scalable 12