The coronavirus pandemic changed the way Americans shop, sending consumers online in droves – a phenomenon that hasn’t fully abated, even as COVID-related restrictions have lifted.

The shift sparked a boom in so-called “last-mile” warehouses that are located in densely populated areas in an effort to reduce delivery times. My company, Suffolk, is currently building two of these facilities in the five boroughs – one in Queens, the other in Brooklyn – and we have conducted estimates for half a dozen others in recent months.

Building last-mile warehouses presents unique challenges. Space is at a premium, so the traditional sprawling suburban model does not work. That means building up, not out. But multi-story warehouses are not the norm. In fact, the Queens facility we are building is a first- of-its-kind undertaking for our client, whose tenant has warehouses all over the nation.

Building in a tightly-packed urban environment requires a different approach that is more technical and time-consuming than the standard construction in which cranes are used to tilt up a series of concrete wall panels into a standing position on a concrete slab base. This is both cost-effective and quick, but not suitable for multi-story structures.

Getting a multi-story warehouse done right requires a degree of sophistication and experience not necessary for a simpler, single-story building. Technologies such as 4D scheduling and logistics simulations incorporated into a comprehensive Virtual Design and Construction (VDC) plan, which are typically used in more complicated residential and commercial projects, for example, can help streamline the process and keep costs under control.

The same level of technological sophistication is also needed inside these warehouses, which are extremely advanced compared to their suburban counterparts. A decade ago, a standard warehouse didn’t have a lot going on inside. It was essentially an empty box in which goods were stored and vehicles were parked. Today’s warehouses are data-driven hubs that enable the close tracking of goods to minimize delivery time and maximize customer satisfaction.

And then there’s the delivery fleet itself, which is increasingly going electric. This is especially true in the case of last-mile facilities located in states like New York, which have set ambitious clean energy goals.

Governor Kathy Hochul has taken steps to aggressively curb greenhouse gas emissions from the transportation sector. In the private sector, a variety of companies – from IKEA to FedEx – are either already employing electric vehicles for last-mile deliveries, or moving toward doing so.

Of course, a fleet of electric delivery trucks requires charging stations, which need to be accommodated into the design of a warehouse without sacrificing significant space that is already at a premium.

When working on a higher-complexity project like a technology-filled urban warehouse, there is very little room for error. The timeline is already slightly longer than a traditional single-story project, and significant setbacks can lead to cost overruns and delays, which is bad for both clients and consumers alike. A combination of community, technological savvy, and experience is critical to the success of a last-mile warehouse.

The unpredictable nature of the COVID-19 virus coupled with the ease of online shopping has fueled continued growth in e-commerce. Though the market has slowed, experts predict it will maintain its steady upward climb. That means the demand for last-mile facilities will remain high. It’s critical that contractors ensure they are stepping up their efforts to be up to the task of meeting the moment to play a key role in the city’s future growth and economic prosperity.

Cliff Goldsmith is Vice President, Operations at Suffolk Construction.