Who is the urban logistics park for? A guide for prospective tenants and decision-makers

The urban logistics park is not just a warehouse in the city, but a complex, strategic business solution. This article is for those looking for a new office and warehouse in Budapest or other large cities, and who want to understand when it is worth choosing urban logistics services.

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We present the types of company that can gain a significant long-term competitive advantage with a well-chosen urban warehouse base:

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• E-commerce companies and online stores
• Labour-centred business service providers
• Companies operating with a showroom and goods-collection point

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If you would like to find out which factors are the most important when choosing an urban logistics park - and why the price per square metre is not the only decisive consideration - this guide will help you get your bearings. 

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The characteristics of the urban logistics market: different not only in size

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It is a mistake to think that the urban logistics park is merely a scaled-down version of traditional warehouse bases. In reality, we are talking about a completely different business philosophy.  The essence of this is speed, proximity and flexibility. And all of this happens in a sustainable way in the CityOne parks.

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This change of approach is not merely an operational question. Urban logistics has by now become a strategic decision for those who want to get ahead of their competitors. While the giant warehouses (big-box) lined up along the motorways are about large quantities, the city-proximate solutions place personalised, fast service at the centre.

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Big-box vs. urban logistics: two worlds meet

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The logistics real estate market is divided into two different universes, between which not only the size but the entire business logic differs:

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Large industrial halls (big-box):

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• Renting units of over 5,000-20,000 m²
• Lower price per square metre
• Mass movement of goods by large companies
• Standardised, uniform solutions
• Cost-efficiency and volume are the main considerations

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Urban logistics centres:

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• Optimal sizes of between 500-1,000 m²
• Medium price per square metre
• Varied SME activities
• There is scope for custom requests
• Speed and flexibility are the main considerations

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The difference, however, goes far beyond the numbers. While traditional large warehouses primarily handle volume, urban logistics solutions build on speed and flexibility. The city-proximate location not only enables a faster reaction time, but also results in significant cost optimisation: namely, the route leading to the final consumer or reseller is much shorter.

Webshops and e-commerce companies: clear cost-efficiency

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With the rise of online shopping, the logistics background of e-commerce has also been radically transformed. Buyers expect fast, predictable and flexible delivery (often as early as the next day or even within a few hours). In this competition, the companies that can gain a head start are those that think not only in terms of a large warehouse, but get close to the customer. The urban logistics park offers exactly this opportunity: with a central location, short delivery time and lower operating costs.

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The practical advantages of the urban model

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Most webshops' first reaction to warehouse rental is that „the urban warehouse is more expensive”. This is partly true - per square metre there is indeed a small difference. But when we examine the entire logistics chain, the picture is already more nuanced.

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In a well-functioning urban model, there is no need for 30-40 vans a day setting off from an external site (e.g. from Üllő), standing in traffic jams for hours, and then returning to the centre. Instead, 2 lorries bring the goods into the urban logistics park, from where delivery takes place locally, faster and more cheaply.

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This reduces not only fuel and driving time, but also fleet size, administration and servicing costs. And ultimately it means a more satisfied customer and a competitive advantage on the market.

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One of the tenants of our BudafokOne park, Mixpakk, for example, is an urban logistics partner that, by implementing this model, serves webshops from a central site.

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Nor is it worth forgetting about returns handling, which is an inherent part of e-commerce. Every returned product requires warehouse capacity and a work process. Urban proximity is an advantage here too, since the logistics are simpler, processing is faster, and there is less customer churn.

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Companies where the availability of well-trained workers is a competitive advantage

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Not every tenant is a logistics service provider or a webshop. More and more businesses are looking for an urban logistics park where, alongside the warehouse, an office, laboratory or development workshop also operates, and where the daily presence of employees is crucial. For them, urban proximity is not a simple convenience decision, but one of the tools for retaining the workforce.

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Keeping the key people local: the amount we commute matters

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If a company employs engineers, sales staff, developers or project managers, „moving out” to an external warehouse can run into serious obstacles. Those who are used to the urban environment rarely take on a daily commute to an outlying industrial zone willingly. Skilled and experienced workers are valuable; how easy it is to retain them (or, indeed, to replace them...) does matter.

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Based on CityOne's experience, the companies that particularly look for such a location are those that:

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• operate their own service or spare-parts warehouse,
• carry out development or assembly work (e.g. lighting technology, industrial control, IT infrastructure),
• or simply follow a business model where the office and the warehouse actually work together.

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For example, a business dealing with the maintenance of industrial equipment often keeps a repair base and service warehouse in one place. If, alongside the technicians, the designers and sales staff also work there, then the office environment also becomes a decisive consideration.

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A liveable environment and services in the district

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One of the hidden advantages of urban logistics parks is that they are not only accessible, but also liveable. 

In the vicinity of the CityOne parks, restaurants, cafés, sports facilities, shops and basic administrative points are also available. If an employee can have lunch, do sport or even shop before or after work, this reduces daily stress and increases workplace satisfaction.

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Good public transport connections are a further advantage and in some cases can also mean a serious saving on wage costs at companies where not everyone has a company car. Such a working environment is not only comfortable, but also contributes seriously to loyalty and to reducing turnover.

Showroom, goods handover and office in one place

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For many businesses, just a small warehouse or office is not enough; a showroom is also needed, where customers can meet the products in person. Urban logistics parks fit these hybrid business models particularly well, where the customer experience and a practical location matter at the same time.

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Simpler customer handling

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In an urban logistics park, you do not have to take the partner to a separate place if they want to look at a product, negotiate or collect the goods. The warehouse, the showroom and the office operate at one site, serving as a real hub, in an easily accessible location.

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This is ideal, for example, for:

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• distributors of industrial equipment or large-scale devices,
• wholesalers who maintain a personal relationship with their customers,
• or companies that also use their premises as a collection point.

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One of the largest workwear companies, for example, is a business where not only warehousing but also product presentation takes place within the park. Customers come here, look at the goods, and can even take them away on the spot. This saves time, cost and logistics steps (and it also looks good from a marketing point of view).

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A professional appearance, in an industrial environment

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These companies often cannot or do not want to operate in a city-centre office building, since their products are large, heavy and require a technical demonstration. The industrial character of an urban logistics park, on the other hand, makes it possible to receive customers in a functional yet representative environment.

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Modern logistics parks are no longer „halls”, but mixed-function, well-designed buildings where business presence does not come at the expense of practicality. This can be an ideal choice for companies that, alongside technical content, also offer a personal relationship and a service experience.

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Who is the urban logistics park for?

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The urban logistics park is for those who are looking not just for a warehouse with an office, but also for business efficiency and long-term stability. For webshops, labour-centred companies and businesses working with a showroom, it can mean a real, clearly demonstrable competitive advantage.

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The CityOne parks offer a solution where logistics, office and employee experience are present at the same time. All of this operates in everyday life with an optimal location, well-thought-out infrastructure, in a sustainable way.

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If you are interested in how this model could fit into your company's operation, come and see it in person at our BudafokOne or ÚjbudaOne logistics park.

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