We are always producing content about innovations and trends in the commercial real estate market here at REsource. However, it's also important to introduce some terms and concepts that are becoming increasingly popular and are fundamental to the industry. In our special series, we have already discussed retrofit, Built to Suit, Built to Rent, and others. Today, we will talk about a term that has gained significant importance with the advancement of e-commerce: Same Day Delivery or SDD. Do you know what it means? 

Well, as the name suggests, it refers to the delivery of a product purchased online on the same day as the purchase. While this delivery method requires careful planning and robust logistical infrastructure, many companies recognize it as an essential service for online consumers and are investing to offer this delivery option. Many stores that provide this type of service set a specific cutoff time during the day, so that products can truly be delivered on the same day as the purchase. 

With the intensifying competition in online retail, consumers are becoming increasingly demanding, and offering Same Day Delivery represents a significant competitive advantage, adding value to the product at the time of sale. 

However, there are some challenges for e-commerce and retail companies to implement this service in their businesses. To enable this type of delivery, the entire process of an online sale needs to be aligned. The store must have fast payment methods to avoid delays in the purchase process, such as those that occur with payment via bank slips, which require a banking clearance period. In such cases, the money tends to take longer to reach the company's account, delaying the product release for shipping. Additionally, the company needs to have its own logistics department or hire a reliable third-party service provider that can ensure the fulfillment of the promised delivery timeframe to the consumer. 

In recent years, this type of service has become increasingly popular and is already offered by major players like Amazon and Mercado Livre for certain products and regions, as well as by pharmacies, pet shops, and food chains.  To enable fast deliveries, retailers that offer online sales and e-commerce companies need to install distribution centers in regions close to major consumer centers, which often have less available space and higher costs.

In the case of São Paulo, for example, the vacancy rate for A+ and A industrial properties located within a 30 km radius of the city is 10.4%, according to data from the 1Q23 SiiLA Market Analytics platform, with an average asking price per square meter around R$ 29.20 (about 6 dollars). As the distance increases, such as in the 60 to 90 km range, availability tends to be higher - in fact, the rate rises to 18.5% under these conditions, with an average asking price of approximately R$ 21.45/m² (around 4.41 dollars).

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