EveryCalc

Finance category

Mortgage, loan, investing, tax, and money calculators.

Browse finance

Last Mile Delivery Rent Premium Calculator

Last-mile logistics buildings command major rent premium over traditional distribution.

$
min

Last-mile rent / sqft

$17.88

Premium %

0.79%

Rent lift / sqft

$7.88

How the math works

Premium % = density × 0.15 + (30 − drive time) × 1.5% + fleet size lift, × calibration.

1.5M × 0.15 + 12 × 1.5% + 0.12 = 0.525 × 1.5 = 79% premium. $10 × 1.79 = $17.87 last-mile rent.

How to Use

  1. Enter traditional distribution rent / sqft.
  2. Enter population density within 10 miles.
  3. Enter drive time to urban core (min).
  4. Enter fleet size parked on-site.
  5. Enter premium calibration.
  6. Read estimated last-mile rent.

Frequently Asked Questions

Why last-mile premium?

Proximity to consumers = fewer miles driven per delivery = lower fleet + labor cost + faster delivery. Amazon Prime Now, instant grocery, same-day delivery require <20 min drive to 80%+ of customers. Urban infill buildings: 20-40% premium over suburban distribution. Prime last-mile (within 5 miles of 200k+ people): 40-80% premium.

Typical rent differentials?

Suburban distribution (rural/outer suburban): $6-10/sqft. Inner suburban: $10-15/sqft. Urban fringe: $15-22/sqft. Urban infill (last-mile ideal): $22-35/sqft. Dense urban (LA, NYC, SF, Boston, DC): $35-75/sqft. 2-3× rent premium paid for 10-20 minutes closer to delivery population. Van parking, driver break space, small fulfillment: critical site features.

Fleet parking need?

Amazon Delivery Station (DSP): 100-200 vans parked overnight = 1-2 acres secured. Instacart/DoorDash shoppers: 20-40 cars + rentals. UPS/FedEx: 50-150 trucks. Van/truck parking is the scarce resource in infill markets. Landlords build: fenced yard, EV charging, dock-high for trailer drop-off. Tenants pay premium for adequate fleet parking.

Multi-tenant last-mile?

Some facilities structured as 3-5 tenant 'delivery hubs': Amazon, FedEx, UPS, regional delivery co-located. Each tenant: 15-40k sqft + van parking + driver facilities. Rent per tenant $1-3M/year. Landlord gets stable 10-15 year leases from investment-grade delivery companies. Emerging asset subclass.

Related Calculators

More Finance Calculators

Browse all finance

Keep exploring

Next steps in Finance

View finance hub →