MetroCommon × 2050 FEBRUARY 2021 Transportation and Mobility

Hidden and in Plain Sight: Impacts of E-Commerce in Massachusetts

Photo: Amazon Prime Van in Revere; Shutterstock MetroCommon × 2050 Hidden and in Plain Sight: Impacts of E-Commerce in Massachusetts Authors

Primary Authors: Alison Felix, AICP, Senior Transportation Planner & Emerging Technologies Specialist; Travis Pollack, AICP, Senior Transportation Planner Contributors: Eric Bourassa, Director of Transportation; Josh Eichen, Senior Economic Development Planner; Alyssa Kogan, Regional Planning Data Analyst; Lily Perkins-High, Analytical Services Manager; Tim Reardon, Director of Data Services; Kit Un, Visual Designer Editor: Karen Adelman, Senior Communications Strategist MAPC Director: Marc Draisen, Executive Director A special thank you to Eric Bourassa and Tim Reardon for their guidance and feedback. Thank you to Karen Hollinger, AvalonBay; Bill Kuttner, Central Transportation Planning Staff; Mark Giuffre, UPS; James Fitzgerald and Tad Read, City of Boston; Melissa Santucci-Rozzi, Town of Braintree; Jeremy Rosenberger, Town of Dedham; Robert O’Brien, City of Revere. Thank you also to the members of the South West Advisory Planning Committee and MetroWest Regional Collaborative subregions of MAPC for their feedback during presentations on this topic by the authors.

About MAPC and this Report

The Metropolitan Area Planning Council (MAPC) is the regional planning agency for the 101 cities and towns of Greater Boston. Our mission is to promote smart growth and regional collaboration. Today, the Commonwealth is seeing rising numbers of delivery trucks and vans on the roadway network as people increasingly ordering online for goods, meals, and groceries. For these deliveries to arrive timely each day, a sophisticated logistics network of warehouses, distribution centers, and delivery vehicles needs to be in place. While the effects of this growing form of retail on the roadway network may be noticeable, e-commerce is also having effects on land use, traditional retail, and employment which are not as directly apparent. MAPC has undertaken Hidden and in Plain Sight: Impacts of E-Commerce in Massachusetts to better understand how e-commerce affects the region’s communities, and to provide a resource for municipalities and policy makers grappling with the rapid growth and multiplying impacts of this expanding form of retail. This report concentrates primarily on the transportation and land use effects of increasing online shopping, highlighting key trends both nationally and in Massachusetts. We suggest directions for further research, and we put forward potential policies that could help communities sustainably manage the growth in warehousing and distribution centers and its associated delivery traffic. MAPC intends to serve as a resource for continued information sharing and findings from e-commerce surveys and pilot programs and conduct research on how municipalities in Massachusetts are currently mitigating and managing the impacts of warehouse and distribution centers. As a follow up to this report, MAPC plans to collaborate with municipalities to develop a playbook on the management of e-commerce warehouse and distribution centers as a resource for other municipalities. Please e-mail [email protected] with relevant information or to be informed of future initiatives. MetroCommon × 2050 ES-1 Hidden and in Plain Sight: Impacts of E-Commerce in Massachusetts

Executive Summary

E-Commerce Today

E-commerce – the buying and selling of goods or services via the internet, and the transfer of money and data to complete the sale – is a $600 billion industry in the United States, comprising approximately 14 percent of total retail sales.1, 2 In 2019, Amazon alone delivered about 2.5 billion packages in the United States, an estimated 20 packages for every household.3 In the first 9 months of 2020, which forced many to remain at home due to the pandemic, e-commerce sales increased 34 percent. The increasing availability and use of next-day and same-day deliveries and the growth in restaurant deliveries via third-party apps such as Uber Eats also fueled this rapid growth. Despite its impressive growth, e-commerce currently represents less than a fifth of total retail sales. Yet its impacts on traffic, employment, and land development are already apparent across the U.S. In Massachusetts, the impacts of e-commerce can be seen in shifts in employment and in the growth of warehouse and distribution centers. The state’s non-store retail employment – which includes online retail occupations – grew 64 percent from 2010 to 2019, while its employment in transportation and warehousing increased 30 percent. During this same period, traditional retail employment numbers in Massachusetts remained relatively flat. The rapid growth of e-commerce has had widespread effects, especially on transportation networks and land use. These impacts include increased traffic and emissions from delivery vehicles, greater competition for curb space during deliveries, and greater demand for land for warehouse and distribution centers. Amazon, the world’s largest retailer, has 34 facilities either operating or proposed in Massachusetts. Once all facilities are operational, the Amazon footprint in Massachusetts will comprise over 12 million square feet of warehouse and distribution space.4 A significant component of e-commerce is restaurant delivery and the purchase of prepared meals.5 Nationwide, transactions from services such as DoorDash, Grubhub, Uber Eats, and Postmates increased approximately 200 percent between 2015 and 2020, generating an estimated $26 billion in revenue in 2020.6 Online grocery sales for home delivery and pickup reached $5.9 billion in November 2020, a threefold increase from August 2019. The volume of orders has more than tripled to almost 63 million, and the number of customers has more than doubled to nearly 39 million during this period. There is also an increase in the average amount of spending per order and shopping frequency.7 Many industry experts believe that the consumer shift to online grocery delivery and pickup will continue even beyond the COVID-19 pandemic.8, 9 There are also equity concerns, including whether low-income neighborhoods and communities of color are disproportionally bearing the traffic, noise, and air pollution from distribution facilities, and whether the shift from traditional retail jobs to warehousing and deliveries is having a greater impact on certain subsets of the population, especially in regard to employment, wages, benefits, and working hours. Other impacts include reduced spending and associated employment and tax-revenue generation at brick- and-mortar retail stores, and the possible erosion of job security due to a shift toward the use of contractors for deliveries. ES-2

Of course, not every effect of e-commerce is negative. The online retail business model and economies of scale have lowered prices for many consumer goods, and have enabled home-bound and carless residents to purchase goods, services, and foods that might otherwise be unavailable to them. Unfortunately, a lack of reliable data makes assessing impacts difficult and complicates the task of managing e-commerce to ensure greater equity and sustainability in the region.

Transportation Impacts

In response to the needs of e-commerce, the supply chain has expanded and evolved. It is now a vast network of interconnected facilities that can terminate not at a store, but at the consumer’s home.10 The resulting increase in delivery-vehicle traffic affects the region’s transportation network. Since 2010, total Vehicle Miles Traveled (VMT) nationwide has grown nine percent overall, with a 13 percent increase in urban areas. In Massachusetts, between 2010 and 2019, total VMT grew 19 percent statewide and 23 percent in urban areas.11 Some of this can be attributed to recovery from the Great Recession, but there is also evidence that e-commerce and the widespread adoption of ride- hailing services are contributing to the growth and its impacts. It is difficult to determine the extent to which e-commerce deliveries may be replacing vehicle trips for shopping. In theory, a consolidated delivery system of e-commerce could reduce VMT as compared to individual households making their own shopping trips in cars. The reality is more complex. A single online order may arrive in multiple shipments. Thirty percent of online orders are returned, and 15 percent never make it to the correct address on the first delivery attempt. At least one survey suggests, perhaps counterintuitively, that the more in-store shopping trips a household conducts per week, the more weekly online packages the household receives. Moreover, higher-income households are more likely to pay for expedited or same-day deliveries. These services have relatively greater traffic impacts, since expedited deliveries are typically shipped in a single package and are less likely to be consolidated with other packages for delivery efficiency.12, 13 The growth in e-commerce creates conflicts on local streets. Deliveries compete with bicycle lanes, on- street parking, transit stops and bus lanes, as well as with passenger pickup and drop off. These conflicts are not limited to business districts and commercial areas; they also occur in residential neighborhoods that rely on on-street residential parking. Outdated curb regulations and pricing policies and ineffective enforcement are ill-suited to an era in which commercial demands for curb space are growing so rapidly.14 E-commerce distribution nodes also strain the transportation system. These facilities are often 24-hour operations, typically generating more than 1,000 vehicle trips each day.15 They are frequently located in places where access by public transit is limited.16 ES-3

Land Use Impacts

The pressure to maintain dependable and ever-quicker delivery times has resulted in e-commerce companies adding warehouse and distribution centers closer to consumers as part of their regional networks.17 In 2020, Amazon opened more than 175 new fulfillment centers, sortation centers, delivery stations, and regional air hubs in the U.S. and Canada, a trend that shows no signs of slowing. The competition to add warehouse and distribution centers has resulted in a high demand for industrial real estate, particularly in urban areas. In urban Boston, warehouse rents have increased 42 percent over the last two years.18 Primarily sited in industrially zoned areas, these facilities require both substantial amounts of land and easy access to the regional highway network.19 The U.S. has more retail space than any other country. Even in the absence of e-commerce, the nation’s retail space is considered to be “overbuilt,” and that in-person retail activity is insufficient to support the existing retail footprint. Malls and commercial real estate have been contending with sizable and steady closures, vacancies, and declining profits over the past several years. Nationwide, physical-store closures reached an all-time high in 2017 and again in 2019.20 Approximately 25 percent of all malls nationwide (approximately 1,000) are projected to close over the next five years.21 At the same time, online shopping’s share of total retail sales is projected to increase to 25 percent by 2026, if not sooner.22, 23 These trends, a function of changing consumer behavior and a rise in e-commerce, predated the pandemic; but the social distancing and economic recession associated with the pandemic have accelerated physical retail decline.24

Potential Policy Strategies and Next Steps

E-commerce is changing our economy, consumer practices, and society. It is imperative that state and municipal governments prepare for and manage these disruptions. Land use and transportation policy and planning can ensure that the growth of e-commerce helps the region and the state to achieve its goals related to transportation, equity, economic growth, and sustainability.25 The five potential policy strategies, which can be implemented at the state and local levels, identified in this report include:

Advance regional coordination among municipalities. Create a regional strategy for the siting and operations of warehouse and distribution centers to manage impacts such as traffic congestion and emissions. The regional strategy includes developing a transportation and land use design playbook for municipalities, which would include recommendations about zoning, building codes, proposal review, mitigation, tax incentives, and monitoring. A playbook will promote consistency and ensure a level playing field across cities and towns.

Increase transparency in the growing e-commerce industry. Require e-commerce companies to report information and metrics such as the location of warehouse and distribution centers, employment, and transportation impacts of e-commerce logistics and delivery. Data sharing is a critical step to understand and sustainably manage the impacts of e-commerce. ES-4

Establish incentives for efficient deliveries. Both the public and private sectors should incentivize more efficient deliveries to reduce traffic and associated greenhouse gas impacts. This can be done by determining a method to assess the impact of e-commerce on congestion and emissions, and then setting a fee structure that incentivizes companies and customers to opt for more sustainable delivery options, such as combining orders into a single delivery and not choosing expedited deliveries.

Implement curb management strategies. After conducting comprehensive curb space inventories, municipalities should use that information to establish curbside management policies that reduce congestion, safety risks, and conflicts. These policies should designate delivery and loading zones, establish dynamic pricing mechanisms to foster efficient utilization of the zones, and authorize rigorous enforcement practices.

Track innovations in e-commerce. Track new technologies and innovations in the e-commerce industry such as package lockers, cargo bikes, air and ground drones, and autonomous vehicles to minimize negative impacts while ensuring public safety and convenience. MetroCommon × 2050 Hidden and in Plain Sight: Impacts of E-Commerce in Massachusetts

Table of Contents

Executive Summary ES-1

Frequently Used E-Commerce Industry Terms 1

Chapter 1: E-Commerce in the US 2 Introduction 3 National Trends and Impacts 4 Massachusetts E-Commerce Trends 5

Chapter 2: Transportation and E-Commerce 7 Traffic and Air Quality Impacts 10 Deliveries and Curb Impacts 11 Package Lockers 14 Traffic from Warehouses and Distribution Centers 16 Emerging Delivery Models 17 • Cargo Bike Deliveries 17 • Drones – Air and Ground 18 • Autonomous Vehicle Deliveries 18

Chapter 3: Land Use and E-Commerce 19 Amazon Facilities in Massachusetts 21 Warehousing and Distribution Centers in Eastern Massachusetts 23 Delivery Operations 26 Impacts of E-Commerce on Retail Infrastructure 27 State and Municipal Revenues 28 Impacts of E-Commerce on the Restaurant and Grocery Industries 28

Chapter 4: Context of COVID-19 Pandemic 30

Chapter 5: Future Trends and Additional Research Areas 32 Omni-channel Retail 33 Sustainable Logistics 34 Waste and Recycling 34 Shifts in the Warehouse and Distribution Center Marketplace 34 Third-Party Delivery Service Fees 34 Residential and Commercial Building Design 34 Chapter 6: Potential Policy Responses to E-Commerce 35 Regional Coordination Among Municipalities 36 Increase Transparency into the Growing E-Commerce Industry 36 Create Incentives for Efficient Deliveries 36 Track Innovations in E-Commerce 36 Implement Curb Management Strategies 37

Chapter 7: Next Steps and Areas for Further Research 38 Data Collection 39 Management of Warehouse and Distribution Centers 41 Data Sharing Legislation 41 Information Sharing 41

Appendix: Playbook of Actionable Steps to Manage Warehouses and Distribution Centers 42 Traffic Impact Studies 43 Trip Forecasting 43 Site Plan Review 44 Traffic Mitigation 44 Off-Site Parking 45 Traffic Demand Management (TDM) Program 45 Fueling Operations 45 Excise Tax 45 Vehicular and Roadway Signage 45 Idling 45 Truck and Van Drivers 45 Project Monitoring Post Occupancy and Corrective Actions 45

Endnotes 46 MetroCommon × 2050 Hidden and in Plain Sight: Impacts of E-Commerce in Massachusetts

Figures and Table

Figure 1. E-Commerce as a Percent of Total Retail Sales Nationwide 4 Figure 2. U.S. Post Office Package Deliveries, 2010-2019 4 Figure 3. Massachusetts Retail and Transportation & Warehousing Employment, 2010-2019 5 Figure 4. Massachusetts and U.S. Department Store Employment, 2010-2019 6 Figure 5. Supply Chain Logistics: Traditional Delivery Model and Trending Delivery Model 8 Figure 6. City of Boston Commercial Parking Violations 13 Figure 7. Consolidated Deliveries, AvalonBay Communities in Massachusetts 15 Figure 8. Amazon E-Commerce Facilities in Massachusetts, 2020 23 Figure 9. Location of Warehouse and Distribution Centers, Eastern Massachusetts 24 Figure 10. Warehouses and Distribution Centers in Eastern Massachusetts, 2006-2020 25 Figure 11. Omni-channel Retail 33

Table 1. Operational and Planned Amazon Facilities 22 Frequently usede-commerceindustrytermswhicharealsoappliedthroughoutthisreport: Frequently UsedE-CommerceIndustryTerms short orlongertime.Warehouses canincludebuildingsdesignedtofulfille-commerceorders. product deliveries. redistribute goodsanddesignedforrapidturnarounde-commercesimilar“justintime” Warehouse: Package Locker: Kitchen:Ghost Distribution Center (or Fulfillment Center): Delivery Provider Service orDSP: Dark Store: Click andCollect: Orders areplacedonlineandpickedupbythepurchasercurbsideatstoreorinstore. convenience. Also referredtoasparcellockers. cloud kitchens,darkorvirtualfoodhalls. prepare foodfortakeoutordeliveryexclusivelytofulfillonlineorders. Also referredtoas providers suchasAmazondeliverpackages. A storethatstocksitemsforfulfillmentbutisnotopentothepublic. A largebuildingwhereraw materialsorfinishedgoodsarestored,foreithera A singlecommercialfacilitythathousesmultiplerestaurantoperatorswho Self-servicesecurecontainerswherecustomerscanpickuppackagesattheir Modelsofferedbyretailerssuchas Target, Walmart, andgrocerystores. Independentdeliveryorganizationsthathelpe-commerce A buildingspecificallydesignedtoreceive,storeand

Impacts of E-Commerce in Massachusetts 1 Impacts of E-Commerce in Massachusetts 2 with suggestionsforfurtherresearch. This studyhighlightskeytrendsbothnationallyandinMassachusetts,concludes currently mitigatingandmanagingtheimpactsofwarehousedistributioncenters. and pilotprogramsconductresearchonhowmunicipalitiesinMassachusettsare from e-commercesurveys as aresourceforcontinuedinformationsharingandfindings streetscape andlandusechallengesthatonlineretailiscreating.MAPCintendstoserve communities, andhowmunicipalitiestheCommonwealth canmeetthe to betterunderstandhowtherapidgrowthine-commerceimpactsregion’s MAPC, theregionalplanningagencyforGreaterBoston,hasundertakenthisstudy online commerceandmorehomedeliveriesofalltypesretail,includinggroceries. urban areas.Thepandemichasacceleratedthesechanges,withagreatergrowthof number ofe-commercewarehouseanddistributioncentersinbothsuburban traditionalretaillocationstoanincreasing environment byshifting retailactivityfrom with millionsofdailydeliveriestobusinessesandhouseholds.Itischangingthebuilt than 300percentsince2010. Thisshift inhowAmericansshopisimpactingtraffic, E-commerce isa$600billionindustryintheUnitedStates, E-Commerce intheUS Chapter 1: 1 having grownbymore rooftops andbuildingentrancestoaccommodaterobotsdronedeliveries. lobbies andentriesoff-streetloadingareasforparceldeliverystorage,bydesignatingplaces for Architects andurbandesignersarereactingtothechangingcommercelandscapebydesigningbuilding business tobusiness,andconsumer(e.g.,onplatformssuchaseBay). transfer ofmoneyanddatatocompletethesale.Itcanbebusinessconsumer, directtoconsumer, impacts relatedtoe-commerce. imperative thatmunicipalitiesandstategovernments betterunderstandanddetermineways tomanage the COVID-19 pandemicshowthatmany plantoshoponline athigherratesinthefuture.Therefore,itis E-commerce isprojectedtogrowrapidlyoverthenext fewyears,andrecentsurveysofhouseholdsduring sustainability intheregion. difficult, whichinturncomplicatesmanagingthe growth ofe-commercetoensuregreaterequityand access. Unfortunately, thelackofgooddataaboutonline retailmakesassessingthebenefitsandimpacts those withoutacartopurchasebreadthofgoods,services,andfoodstheymightnototherwisebeable to resulted inlowerpricesformany consumergoods;ande-commerceenableshome-boundresidents Of course,noteveryimpactisnegative:thee-commercebusinessmodelandeconomiesofscalehave E-commerce Introduction etc.) atboththeregionalandlocallevels: The growthine-commerceisaffectingbothtransportationnetworksandlanduses(zoning,buildingdesign, transactions, andlogisticshave allcontributedtoe-commerce’srise. to advancesintechnology. Leapsinmobiletechnology, wirelessnetworks,ordertracking,onlinefinancial around sincetheinvention ofthemodem,e-commercehasgrownrapidlyoverlasttenyears,thanks the roadhasanimpactonbothtrafficcongestionandairquality. centers andvehiclesdeliveringindividualorderstoconsumers.Theincreaseintruck,van,carson dining space. on-street parking,bicyclelanes,transitlanes/busstops,andrecentlyexpandedpedestrianoutdoor on certainsubsetsofthepopulation. traditional retail jobs to warehousing and deliveries has greater impacts well as whether the shift from fromdistributioncenteroperations,as disproportionally subjecttothetraffic,noise,andairpollution Equity concerns, onrestaurantsImpacts toImpacts brick-and-mortar retail, Greater demandfor warehouse anddistributionsites Greater for competition curbspace Increasing traffic and cartraffic,butalsobringjobs,areincreasinglylocatinginurbanlocationstomeetdemand. distribution centersorotherlandusesremainsuncertain. employment. Theextenttowhichbrick-and-mortarretailmay berepurposedtowarehouseand 2 isthebuyingandsellingofgoodsorservicesviainternet,typicallywithonline includingwhetherlow-incomeresidentsandcommunitiesofcolorare withagreaternumberofvehiclesdeliveringgoodstowarehousesanddistribution withgreatertake-outanddeliveryreducedoreliminatedin-persondining. includingretailclosures,thatmay affectlocallandusesand onlocalstreets.Theincreasedcompetitioncancauseconflictswith thatrequirealargefootprint,generatetruck,van, 4 3 Although it’sbeen

Impacts of E-Commerce in Massachusetts 3 Impacts of E-Commerce in Massachusetts 4 Figure U.S. 2. Post Office PackageDeliveries, 2010-2019 eachyear.nationwide generatesdemandforroughly60tonsoffreight The NationalCapitalRegionTransportation PlanningBoardestimatesthatonaverage, everyperson Figure 1.E-commerce asaPercent ofTotal Retail SalesNationwide 2020, tolevelsoriginallyforecastedbereachedbylate2022. December2019toJuly in theUnitedStatestostay athome,e-commercesalesincreased30percentfrom has morethandoubledinthelastfiveyears.PrimarilyduetoCOVID-19 pandemic,whichforcedmany total retailsales(Figure1).Whilemostarestillmadeintraditionalin-personsettings,e-commerce The CensusBureauestimatesthatasofthethirdquarterin2020, e-commercerepresented14.3 percentof National Trends andImpacts services company, projectedtheshareofonlineretailtorise25percentby2026nationwide. to thepandemic,analystsforecastthisnumberwillincreasebyatleast20percent. delivered about2.5 billionpackagesintheUnitedStates,an estimated20packagesforeveryhousehold.Due in e-commercecausedU.S.PostalServices(USPS)packagedeliveriestodouble(Figure2).In2019, Amazon 2020 Figurespreliminary. Source: USCensusBureau,estimatebaseduponquarterlyU.S.retailsalesindollars(adjusted). 0 4 6 Source: UnitedStates PostalService 5 2 3 7 1 2010 2011 Percent ofUSRetailSalesMadeOnline USPS PackageDeliveries(Billons) 2012 2013 2014 2015 2016 2017 6 Priortothepandemic,UBS,aglobalfinancial 2018 8 Inthepasttenyears,increase 2019 9 7

positive correlation between income and the number of packages received each week from online purchases. positive correlation between income and the number of packages received each week from nationwide –foundthatthisagegroupreceivedtwotothreepackagesperweek,andsimilarlya approximately 64percent(over19,000 employees)and31percent(90,000 employees) respectively(Figure3). and 2019, thestate’snon-storeretailworkforceandtransportation/warehousingincreasedby transportation andwarehousing,however, have seensteadyincreasesinthelasttenyears.Between2010 (overall retail)and33,000 to35,000 employees(departmentstoreretail).Non-storeretailemploymentand store employmentlevelshave remainedrelativelysteadysince2010at330,000 to350,000 employees theBureauofLaborStatistics,Massachusettsretailanddepartment and warehousing.Accordingtodatafrom include retail,departmentstorenon-storeretail(whichincludesonlineretailers),andtransportation Figure 3. Massachusetts Retail andTransportation &Warehousing Employment, 2010-2019 Employment sectorsmeasuredbytheBureauofLaborStatistics Commonwealth. by e-commerce.Selectstateandnationalemploymentdata,however, helpshowe-commercetrendsinthe downtowns suchasManhattan,therehave beennocomprehensivestudiesonvehiculartrafficgenerated localized level.Furthermore,whiletherearelimitedstudiesonparkingandvehiculartrafficimpactsin select retail salesbystate,andtheUSPSotherpackagecarriersdonotreporttheirdataondeliveriesata almost noe-commercedatacollectedonthelocalorstatelevel.TheU.S.CensusBureaudoesnotreport While therearedatashowingthetrendsofe-commerceandonlineretailinUnitedStates, Massachusetts E-CommerceTrends amount ofonlineshopping. started usingonlinefoodorderingapps.Thestudyalsofoundapositivecorrelationbetweenincomeandthe oncethey ordered restaurantfoodonline,and33percentstatedthattheybegantoeatoutlessfrequently New York Cityhouseholdssurveyedwerewillingtopay extraforsame-day deliveries,nineoutoftenhad likely topurchasenon-fooditemsandgroceriesonlineavoid tripsandsave time.Morethanone-thirdof A 2017surveyofhouseholdsinNewYork CityandParisrevealedthatcoupleswithchildrenweremore since 2003, thenumberofdeliveryvehicleshasincreasedby25percentoverlasttenyears. 50percentto37 London’s congestionpricingprogramhasreducedsingleoccupancycarusefrom City alonereceivesanestimated1.5milliondeliveriesperday, morethanoneforeverysixresidents.While While theimpactsofe-commerceareglobal,urbanizedareasexperiencinggreatesteffects.New York Massachusetts RetailandTransportation &Warehousing Employment,2010-2019 11 Astudyofmillennials–whonowmakeupthelargestpercentworkforce either apercentdecreaseorincreasefrom theyear2010. number ofjobsin2010=100. Eachsubsequent yearis Source: BureauofLaborStatistics.Note: Theindexisthe 13 that reflect changes from e-commerce thatreflectchanges 10 12

Impacts of E-Commerce in Massachusetts 5 Impacts of E-Commerce in Massachusetts 6 are three-fourthsstaffedbymen. employment intheU.S.is70percentstaffedbywomen,whilewarehousingandpackagedeliveryjobs mortar toonlineretailhasimpactsongenderequityinemployment.Currently, brick-and-mortarretail brick-and- There areequityconcernswiththischangingretailande-commercelandscape.Theshift from Figure 4.Massachusetts andU.S. Store Department Employment, 2010-2019 employment fordepartmentstoressaw steadylosses(Figure4). 2010to2019,from whiledepartmentstoreemploymentinMassachusettsdecreasedslightly andnational grew by39percentsince2010. Interestingly, bothU.S.andMassachusetts retailemploymentgrewslightly By comparison,U.S.employmentinbothtransportation/warehousingandnon-storeretail public transportation. impacts, asthesitingofe-commercewarehouseanddistributioncentersmay ormay notbeaccessibleby no benefits,suchasretirement,paidleave, andhealthinsurance.Finally, theremay begeographicequity of e-commercejobs,particularlydeliverypositions,arefilledbyindependentcontractorswithlimitedor either apercentdecreaseorincreasefromtheyear2010. Source BureauofLaborStatistics.Note:Theindexisthenumberjobsin2010=100. Eachsubsequentyearis US andMassachusettsRetailDepartmentStoreEmployment,2010-2019 15 14 Furthermore,thereareconcernsaboutwhetherthegrowingnumber E-Commerce Transportation and Chapter 2:

Impacts of E-Commerce in Massachusetts 7 Impacts of E-Commerce in Massachusetts 8 vehicles compete foruseofthecurb. roadways andstreets,locallywithmultipledailydeliveries atworkplacesandresidenceswheredelivery As aresult,e-commerceimpacts transportationnetworksregionallywithincreased vehicletrafficon package lockers. brick-and-mortar stores,multiple warehouseanddistributioncenters,customer click-and-collectpoints,and that movesgoodsacrossa complex networkofinterconnectedfacilities.This networkincludes where consumersmadepurchases.Duetoe-commerce, thesupplychainhasevolvedintoanexpandedmodel from thefactorytodistributor,supply chainswork.Inthepast,goodsmovedfirst andthentothestore Centered onamodelofsame-day deliveryandalocalapproachto distribution, e-commercehasreshapedhow Figure 5. SupplyChainLogistics management andthepicking,packing,shippingofonlineorders(Figure5). processes involved instoringandshippinginventory foranonlinestoreormarketplace,includinginventory are someofthelinksinsupplychain.Fore-commerce,chainlogisticsprimarilyrefersto acquisition ofraw materialstodeliveryoffinishedproductstheenduser. Distributors,stores,andbuyers supply chainconsistsofthematerialandinformationalinterchangesinlogisticalprocessstretchingfrom The transportationimpactsofe-commerceareprimarilyduetowhatiscalled“supplychainlogistics.” The Presentation: E-commerceTrends andVehicle Types, LisaNisenson,WGI Source: APA Learn,Live-Work-Play Dispatch:DesigningforE-Commerce Trending DeliveryModel Traditional DeliveryModel Online Groceries Online Order Online Food Factory 2 Package Distributors Food Distributors Restaurants Distributor Microwarehouse Distribution Retail/Grocery + Sorting Center Sorting Dark Stores Retail Store Drone-Van Hybrid Drone Delivery Home Delivery Delivery Service 1 Store Pick-up Buyers customer shoppinghabits. these interventionswillrequiresubstantivepolicychanges, monetaryinvestments, alongwithchangesin enforcement, installationofpackagelockers,andcreating moredeliveryparkingzones.Implementing including mandatedelectricvehiclefleetadoption, use ofdronesfordeliveries,increaseddouble-parking recommended variousinterventionstoreducetraffic congestionandassociatedcarbon-dioxideemissions, growth inlast-miledeliveriesalonecouldincreaseaverage commutesby21minutes2030. Thereport along witha32percentincreaseincarbon-dioxideemissions.Thestudyalsofoundthatimpactsof 2019to2030,without policyintervention,thenumberofdeliveryvehicleswillincrease36percentfrom fromseveralcitiesacrosstheglobe.Thestudyconcludedthat deliveries usingtrafficandotherdata delivery process. in-store orcurbsidepickupmodelismorecosteffectiveforretailers,astheydonothandlethelast-mile surcharge couldimpactthe volumeandsizesofpackagesthesecompaniesship withUPS. numbers ofshipments.Typically, these extrafeesareimposedduringtheholiday shoppingseason.The for large,high-volumecompanies suchasAmazon,Target, andBestBuy in anefforttomanageincreasing packing materialscouldbe reduced.Sincethepandemicinearly2020, UPS has added“peak”surcharges this optionwasappliedon amorewidespreadbasis,andnotjustbyAmazon,the numberofdeliveriesand incentivizes customers(throughdiscountsorreduced fees)tocombinepurchasesintoasingledelivery. If by same-day deliveriesandencourageuserstoselect less-expediteddeliveryoptions.Amazonattimes associated GHGimpacts.Asurchargeonsameday deliveriescouldmonetizethetraffic impactscreated Both thepublicandprivatesectorshave beguntoincentivizemore efficientdeliveriestoreducetrafficand than 0.2 milesfornext-day delivery. an expeditedone-hourdeliveryrequiresaverage of1.3milesperpackagedelivery, comparedtoless in increasingthenumberofvehiclemilestraveled perpackagedelivery. Theirresearch estimatesthat found thatoffersforsame-day deliveriesareestimatedtobeamongthemostimportantdeterminants delivery. Same-day deliveryisforecasttoincrease15percentwithinfiveyears.AnalysisbyUCDavis both nowandinthefuture.Asof2018, approximatelyfivepercentofe-commercewassame-day Some researchershave beguntoestimatetheimpactsofe-commerceonbothVMTandvehicleemissions, curbside atthestoreorinstore.ThisdoesnotreduceVMT. such asTarget, Walmart, andgrocerystores.Ordersareplacedonlinepickedupbythepurchaser An additionalnumberofhouseholdsarealsoembracingthe“clickandcollect”modelsofferedbyretailers from acentralizedpick-uppoint. returns aremoreconvenient forthecustomerandretailerbenefits in Walmart’s physical storesatnoadditionalcost.Bytheseleveragingtheirphysical locations, offers aMobileExpressReturnsservicewhichallows Walmart productspurchasedonlinetobereturned Kohl’s willpackageandsendreturneditemstoAmazononbehalfofcustomersatnocost.Walmart ordered online.Forexample,inapartnershipwithAmazon,Kohl’sacceptsreturnsofAmazonorders. New approachesarebeingdesignedtomanageandfacilitatethereverselogisticsofreturningitems shopping trips,butratherprovidinganotherway forthosewithmoredisposableincometoshopmore. deliveries. Thesefindingsallsuggestthate-commerceatthistimemay notbedirectlyreplacingin-person each week;itfound,too,thathigher-incomehouseholdsweremorelikelytopay forexpeditedorsame-day in-store shoppingtripsahouseholdconductsperweek,themoreonlinepackagesreceives week forhouseholdswithanannualincomeoflessthan$25,000. Thisresearchalsofoundthatthemore than $75,000 annually)hadanaverage ofthreepackagedeliveriesperweek,comparedtotwopackages shopping. SimilarresearchonshoppersinTexas foundthatwealthierhouseholds(thosemakingmore delivery vehicles.Thestudyalsofoundapositivecorrelationbetweenincomeandtheamountofonline were willingtopay extraforsame-day delivery. Meetingthisimmediatedemandentailstheuseofmore A comprehensivestudyoftheonlineshoppinghabitsManhattanresidentsfoundthatmorethanathird regional traffic. again illustratesthedifficultyincalculatingwhethere-commercehasanetpositiveornegativeimpacton Vehicle MilesTravelled (VMT)andassociatedtrafficcongestionGreenhouseGas(GHG) emissions.This However, ashoppermakingtriptotheretailcenterreturnanonlinepurchaseresultsinadditional 13 16 15 AstudybytheWorld EconomicForumprojectedthegrowthin 12 Itisworthnotingthatthecustomer 17 11 9

Impacts of E-Commerce in Massachusetts 9 10 Impacts of E-Commerce in Massachusetts in urbanareasbetween2010and2019. 13 percentinurbanareas,whileVMTMassachusettshasgrown19statewideand23 Since 2010, totalVehicle MilesTravelled (VMT)nationwide hasgrownninepercentoverallbutincreased used tobemadetraditionalretailstores. e-commerce deliveries(trucks,vans,andcars),doreplacevehicletripsthat The increaseduseofe-commerceraisestwotraffic-relatedquestions:howmuchaddedtrafficisdueto Traffic andAirQualityImpacts by making purchases online, and whether they are using any new “free time”forothertrips. by makingpurchasesonline,andwhethertheyareusing any new“free This involves bothacaranddeliverytrip.Another questioniswhatconsumersdowiththetimesaved a brick-and-mortarstoretolookatproductsbeforecomparing pricesandpurchasingonlinefordelivery. In somecases,e-commercemay entailbothanin-person storevisitandadelivery. Someconsumersvisit each individualhouseholddrivingfortheirshoppingtripsshouldhave loweredoverallVMT. vehicle tripsforshopping.Intheory, aconsolidateddeliverysystem of e-commerceorderscomparedto There hasbeenalmostnoresearchontheextenttowhiche-commercedeliveriesmay bereplacing vans andcars.Localdataonthenumberofdeliveriestheirtrafficimpactsremainsdifficulttocollect. However, thisgrowthintrucktrafficonlytellspartofthestory, asmany deliveriesarenowmadeby daily. ThenumberoftrucksontolledbridgesintoNewYork 2014 to2018. Cityroseninepercentfrom eight years.Asof2018, atleast15percentofNewYork Cityhouseholdsreceivedatleastonepackage In 2018, NewYork Cityreceived1.5milliondeliverieseachday, anumberthathastripledoverthelast services arecontributingtothegrowthinVMTandassociatedtrafficcongestionvehicleemissions. the GreatRecession,thereisalsoevidencethate-commerceandwidespreadadoptionofride-hailing directly replacing in-person shoppingtrips: The reality ismore complex, indicating that onlineshoppingmay be notnecessarily • • • • opportunity tooptimizedistributionandrouting. which requiresfasterdeliveries.Thiscanrequiremorevehiclesandless Households arenowofferedmoreoptionsforsame-day ornext-day shipping, asingleonlineorder.in multipledeliveriesfrom separatewarehouseordistributioncenters.This canresult can beshippedfrom asinglesite,suchasAmazonorTarget,An onlineorderforseveralitemsfrom first deliveryattemptscanbeashigh15percentinsomecities. Additionally, duetotheft ordeliveriestothewrong location,therateoffailed the buyer, preferablytoadestinationthatallowsfor somevaluerecapture. what theindustrycalls“reverselogistics”–movingofreturnedordersfrom Thirty percentofonlineordersarereturned. logistics and multiple delivery attempts increases the number of vehicular trips. during theirin-personshoppingtrips. basis andalsogoonlineprimarilytopurchaseselectitemstheyhave notbought person shoppingtrips.Rather, shopperscontinueto shopinpersononaregular Surveys ofshoppersindicatethatonlinedeliveriesarenotwhollyreplacingin- 3 While some of this growth can be attributed to recovery from Whilesomeofthisgrowthcanbeattributedtorecoveryfrom 7 Thishascreatedtheneedfor 6

8 Reverse 5

4

greatest impactsonreducingtrafficandairqualityimpacts. interventions, suchaspackagelockersandimproveddeliveryparkingregulations/enforcementtohave the traffic impactscreatedbye-commerce,researchsuggeststheymustbedoneinconjunctionwithother about thetax’simpactsonlower-incomehouseholds.Whilethesesurchargescouldhelpmonetize raise revenuesforthecity. surcharge ondeliveries,withtheexceptionofmedicineandrestaurants.Thepurposetaxistohelp also areinsuburbanneighborhoodswithagreaterprevalence ofon-streetresidentialparking. hazard inurbanareas.Thesecurbspaceconflictsare notlimitedtocentralbusinessdistricts,but inbikeand buslanes)have becomeafrequent Delivery vehiclesdoubleparked(particularly during theCOVID-19 pandemic,arealso occupying curbspacepreviouslydedicatedtootheruses. (TNCs). Parkletsandextendedoutdoordiningareas, which have becomemorewidespread lanes, aswellpassengerpickupsanddropoffsfor taxisandtransportationnetworkcompanies compete withotherusesofthecurb,suchasbicycle lanes,on-streetparking,transitstopsandbus The growthine-commercealsocreatesconflictsonlocalstreetswheredeliveryvehiclesmust Deliveries andCurbImpacts Photo: FedExtrucksindowntownBoston;Shutterstock support smallbusinessesandprotecttheenvironment. fee wouldbeusedtofundtheoperatingcostsofNewYork’s publictransitsystemandisintendedto surcharge onpackagestheyorderonline,withtheexceptionofmedicineandfood.Theonlineshopping A billwasproposedinDecember2020NewYork Citythatwouldrequireresidentstopay a$3.00 19 To date,theseproposalshave notbeenadopted,inpartduetoequityconcerns 18 Chicagoalsoproposedinlate2020a$1.25to$2.50

Impacts of E-Commerce in Massachusetts 11 12 Impacts of E-Commerce in Massachusetts Photo (right): UPStruckinBrookline Villageinbike/parkinglane;MAPC Photo (right): oversupply ofdeliveryparkingspaces. Financial Districthasseveralzonesfordeliveriesthat areusedbypersonalvehicles,whichmay indicatean designated fordeliveryvehicles.Thesameapplies CommercialStreetintheNorthEnd.Incomparison, show higherconcentrationsofcommercialvehicles double parking,suggestingthereisnotenoughparking spaces areoverutilized).IntheBackBay, streetsthatareprimarilyresidentialandclosertotheCharlesRiver black showcommercialvehiclesthatwereparkedbeyondthe30-minutelimitfordeliveries(indicating of commercialvehicles(suggestingtoofewspacesdedicatedfordeliveriesandvehicles), indicating theyarelikelyunderutilizedbycommercialvehicles.Redspacesshowdouble-parkingviolations p.m.). AsseeninFigure6, commercialparking/deliveryspacesinpurple hadpassengervehicleviolations, substantial variationincurbspaceutilizationwithinonlyafewhundredfeetthroughouttheday (7a.m.–7 travel lanes,busandbicyclelaneswherevehicleswereoverstaying inloadingzones.Bostonfound utilized. Thecitystudieditsparkingviolationstodeterminewheredeliveryvehiclesweredouble-parking in In 2018, theCityofBostonbegananefforttoidentifycurblaneparking areasthatwereover-andunder- thisprogram. violations thatresultfrom for thereliability, timesavings, andreductionin parking application. DChasfoundthatcompaniesarewillingtopay during designatedtimesviaamobileserviceorsmartphone D.C. allowscommercialvehiclestoparkinloadingzones goods. Forexample,theGoDCgoprograminWashington, space whilesupportingmobilityandaccessforpeople approaches andimplementationplansthatmanagecurbside Curb ManagementStrategyhave comprehensivepolicy Toronto’s CurbsideManagementStrategyand SanFrancisco’s activation, greening,andstorage)accordingtostreettypes. priorities (mobility, accessforpeople,commerce, curb laneasa“flexzone,” andallocatesrankedcurbuse of uses.Seattle’sFlexZone/CurbUsePrioritiesdefinesthe future decision-makingaboutusingcurbspaceforavariety andpolicyguidestoinform comprehensive framework Seattle, Toronto, andSanFranciscohave developed committed bycommercialoperators. that morethan50percentofparkingviolationsincitiesare comprise nearly30percentofparkingactivityincitiesand data issuggestingthat,nationwide, commercialvehicles downtowns andotherdenseareas.Sincethepandemic, to understandthedelivery-zonesupplyanddemandin The firststepintacklingtheproblemwithcurbis delivery spacesandenforcement. pilot programstobettermanageboththesupplyofcurbside the numberofdeliveriesinkeylocationsanddeveloped San Francisco,NewYork, andWashington, D.C.have studied 21, 22 20 24 LosAngeles,Seattle, 23 deliveries only, whichhasreduceddoubleparking and dwelltimesfordeliveryvehiclesinWashington, DC. for parkinganddeliveries. curb. ItrecommendscommunitiesintheBostonareaconsiderpilotprogramstobettermanagecurbside use The BostonMetropolitanAreaPlanningOrganization(MPO)isundertakingresearchonthefutureof Figure 6. City ofBoston Commercial Parking Violations curbside-parking pricing.TheCityalsoplanstoadvanceapilotprogramfore-cargobikedeliveries. On thebasisofthisstudy, Bostonisdevelopingpilotprogramstomanage deliveriesthroughmoredynamic Source: CityofBoston 25 Potentialstrategiesincludemakingstreetparkingalongentirecityblocksfor 13 Impacts of E-Commerce in Massachusetts 14 Impacts of E-Commerce in Massachusetts deliveries perapartmentunitis5.3. 2020, packagedeliveriesincreased by65percent.AsofJuly2020, theaverage numberofmonthlypackage January2019toJuly apartment unitsinthe40buildingsMassachusetts. Overa19-monthperiodfrom to deliverthelockers.Thefigurebelowdepicts consolidateddataondeliveriesacrossthe10,530 all carriers(e.g.,UPS,FedEx,andsmallregionalcarriers) canbeassignedacarriercodethatallowsthem data onpackagedeliveriestobecollected.Eventhough theparcellockersystemwasinstalledbyAmazon, AvalonBay contracted withAmazontoinstallpackagelockersattheirapartmentbuildings,whichallows These apartmentbuildingsarein25municipalitiesthroughout EasternMassachusetts. In Massachusetts,AvalonBay hasanownership interestinabout10,530 apartmentunitsin40buildings. volume ofpackagesitreceives. prior year. Overthepastseveralyears,company reportedhaving a30percentannualincreaseinthe community inthecompany’s portfolioreceivedapproximately1,000 650inthe packagesamonth,upfrom ownership interestinabout80,000 apartmentsnationwide, reportedin2017thattheaverage apartment in thee-commercesector. Forexample,AvalonBay Communities,arealestateinvestment trustthathasan Not surprisingly, ananalysisofpackagedeliveriesto residentialbuildingsmirrorsthetremendousincrease ofthecomplexby78percent. complex inSeattlereducedthetimeUPStruckswereparkedfront reduce congestionandemissions.AstudybyUrbanFreightLabfoundthatpackagelockersatanapartment times. Enablingdriverstomakeonedeliverytripquicklyandefficientlyacentralizedlocationcan Delivering toapackagelockerremovestheneedformultipledeliveryattemptsandreducesvehicledwell Ship &Get,andAmazonHub. stores. TherearevariouslockerservicessuchastheUSPS,Gopost,UPSAccessPoint,DHLLockers,FedEx at centralizedlocationssuchasapartmentbuildings,officegrocerystores,andconvenience packages, usuallywithapersonalizedaccesscodesentbytextore-mail.Packagelockersaretypicallysited pick uppackagesattheirconvenience. After carriersmakedeliveries,customerscanthenretrievetheir Package lockers(sometimescalledparcellockers)areself-servicesecurecontainerswherecustomerscan Package Lockers Photo: UPSlockeratStop&ShopinDedham;MAPC 27 29 Recently, 26 28 Photo (right): UPSDriver;MAPC Photo (right): AmazonPrimedeliveryinRevere;Shutterstock Photo (left): Notes: Figure 7. Consolidated Deliveries, AvalonBay inMassachusetts Communities • • • • While AvalonBay doesnotshareoccupancydata,theyutilizeanindustrybenchmarkof95percent. Package returnsarenotmanaged. door orleft bycarriersaroundthecommunity. AvalonBay notesthisnumberisunderstatedaspackagesaresometimesdeliveredtotheapartment Deliveries includebothmanuallydeliveredpackagesandtopackagelockers. 40000 60000 50000 20000 30000 45000 55000 25000 35000 Jan -19 Consolidated PackageVolume byMonth,forAvalonBay Communities,inMassachusetts Fe -19 b Mar -19 Apr -19 Ma -19 y Jun -19 Jul- - 19 Au -19 g Se -19 p Oc -19 t No -19 v De -19 c Jan -2 0 Fe -2 0 b Mar -2 0 Apr -2 0 Ma -2 0 y Jun -2 0 - Jul- 20 15 Impacts of E-Commerce in Massachusetts 16 Impacts of E-Commerce in Massachusetts each location, some of the Amazon activity replaces traffic frompreviousactivitiesatthesesites. each location,someoftheAmazonactivityreplacestraffic store andRestorationHardware.TheAmazonfacilityinRevereoccupiesanoldNeccocandyfactory. In distribution centerinDedham,forexample,waspreviouslyawarehouseusedbyMacy’sdepartment olderwarehousesorlargebuildings.TheAmazon e-commerce distributioncentersrepurposedfrom Understanding thetrafficvolumegeneratedbythesefacilitiesisfurthercomplicatednumberof replacing othertripsthatmighthave beenmadebyshopperstotraditionalstores. unknown, asistheextenttowhichvehiculartripsgeneratedbyane-commercedistributioncenterare fromwarehouseanddistributioncentersinMassachusetts iscurrently The totalvolumeoftraffictoand description oftheoperationsadistributioncentercanbefoundinChapter3. Photo (right): AmazonPrimevans departingMilforddeliverystation onIndustrialRoad;CentralTransportation PlanningStaff Photo (right): AmazonvanenteringMilford deliverystationonIndustrialRoad; NealMcNamara,NorthboroughPatch Photo (left): operations. product beingdelivered,mostcentershave 24-hour While thetrafficgeneratedbye-commercewarehouseanddistributioncentersvarysizetypeof vehicles. Eachtrip,ofcourse,entailsacorrespondinglegwherethevehicleleaves orreturnstothefacility. ‘inbound’ employeetrafficviapersonalvehicles;and‘outbound’deliverytrucks,vans,orsmaller (primarilyviatractor-trailers); fromwholesalers,retailers,orotherdistributioncenters ‘inbound’ traffic Warehouses anddistributioncentersgeneratethreedistincttypesoftripsassociatedtrafficpatterns: Traffic from WarehousesandDistributionCenters evening. Employees driving to and from thesitearealsopartoftrafficgenerated. evening. Employeesdrivingtoandfrom centers inwaves startinginthelatemorning,makedeliveriesduringday, andthenreturninthe sorted andprepped,thenloadedintovansovernightfordelivery. distribution Deliveryvansdepartfrom tractor-trailers.Theitemsare distributioncenterslateatnightfrom the receiptofbulkdeliveriesfrom 30 Thetypicalcycleofactivityconsists 31 Amoredetailed widespread indeploymentanduse.Thepilotsdescribedbelowarestillearlytheirdevelopment. their effectiveness.Packagelockers(describedearlier)startedaspilotsandarenowbecomingmore municipalities andtheprivatesectorhave developedpilotsofemergingdeliverymodelstodetermine autonomous vehicles,aswellusingexistingtechnologysuche-bikesinnewapplications.Several Emerging deliverymodelsfore-commerceincludenewtechnologiessuchasairandgrounddrones, Emerging DeliveryModels considering nextsteps. for fourtimesasmany packagestobedeliveredduringoneshift. Followingthispilot,theCityis reloaded, anddrovetoanothermeet-uppoint.Itwasdeterminedthatthisdeliverymethodallowed and pedestriansdeliveredthepackageswhiledeliveryvanswentbacktowarehouse, points wherethegoodsweredistributedtoateamofbicyclistsandpedestrians.Inturn, London implementedasuccessfulpilotinwhichdeliveryvansdrovetostrategicallyplacedmeet-up Photo: UPSe-assistbikeinSeattle,Washington; UPS Delivery Solution. In thesummerof2020, BostonreleasedaRequestforInformation(RFI)ElectricCargoBikesas e-cargo bikepilot. companiestousecargobikes,andinSeattle,UPSrecentlyconductedaonemonth encourage freight curb space.InMiami,DHLispilotinge-assistcargobikes,NewYork Citylaunchedaninitiativeto delivery solutionwhichcouldreducetimes,traffic,emissions,aswellcompetitionfor Whether pedal-operatedorelectric,cargobikescanserveasanimble,carbon-neutrallast-mile Cargo BikeDeliveries strategies toaddressthosechallenges. potential regulatory, administrative,andoperational challengestoe-cargobikedeliveryandestablish elsewhere, theCityplanstolaunchane-cargobikedeliverypilotprogramwhichwillidentify 32,33,34 36 WithabetterunderstandingofexistinginitiativesintheBostonmetroareaand

35 17 Impacts of E-Commerce in Massachusetts 18 Impacts of E-Commerce in Massachusetts University; andincommunitiessuchasMountainViewModestoCalifornia. including ArizonaStateUniversity, JamesMadisonUniversityinVirginia,andGeorgiaSouthern a deliveryroboticscompany, hasnewgroceryandmealdeliveryprogramsatuniversitycampuses, test driverlessdeliveriesusingelectricvehicles. adarkstore.InScottsdale,Walmartfor deliveringcustomerordersfrom andGMCruisehave plansto since 45percentofhouseholdtripsareforgroceriesanderrands. years tobecomemainstream,thesetypesofservicescoulddramaticallyimpactpersonaltrips,especially Although widespreaddeploymentofairandgrounddrones andautonomousvehicleswilltakeseveral logistics facility. which autonomousvehicleswillpickuppackagesdroppedoffatUPSstoresandbringthemtoa Pilots arealsounderway usingautonomousvehicles.InPhoenix,UPSwillbeundertakingapilotin Autonomous Vehicle Deliveries plans toconductairdronepilotprograms. deliveries ofhousehold,andgroceryitemsinNorthCarolina.Amazon,UPS,Walgreens allhave package, andfooddeliveries.Walmart andFedExplantocollaborateonapilotsendon-demand Numerous companiesareexploringtheexpansionofaerialandgrounddronesfordeliveriesmedical, Drones –AirandGround concept callede-Palette,whichisamodularstoreonwheelsthatcoulddeliverfoodandpackages. medical suppliesviagrounddronestoretirementcommunitiesinFlorida. deliver prescriptionsinHoustonwithgrounddrones.CVSalsohasapartnershipUPSto 41 InBentonville, Arkansas,Walmart andautonomousvehiclestartupGatikhave plans 37, 38 CVSandNuro,aroboticscompany, have partneredto 42 Toyota hasdevelopedanautonomousdeliveryservice 44 39 StarshipTechnologies, 40 43 E-Commerce Land Useand Chapter 3: 19 Impacts of E-Commerce in Massachusetts 20 Impacts of E-Commerce in Massachusetts foot. market have increased42percentoverthelasttwoyearstoanaverage ofjustover$12.00 persquare stations, andregionalairhubsintheU.S.Canada,atrendwhichshowsnosignsofslowing. Amazon openedmorethan175newfulfillmentcenters,distributionsortationdelivery estate, industrialpropertiesarethrivingprimarilyduetoincreasede-commerceactivity. In2020, While thepandemichashadconsiderableandimmediatenegativeimpactsonbusinessesreal warehouse space,strategicallylocatedwithincloserproximitytoconsumers.” and OfficeRealtors,“Theriseofe-commerceisaprimaryreasonforthegrowingdemandnew heights thandotraditionalwarehouses. short-term goodsstorage,theyrequiremoreloading docks,morespaceforparking,andhigherceiling As e-commercewarehouseanddistributionfacilities aredesignedtoprioritizegoodsmovementand/or pipeline thatwouldbringitsfootprinttoover352million squarefeet. As ofDecember2020, Amazonhad762activefacilitiesacrossthecountryandanother240in potential negativehealthimpactstoarearesidents. caused bydeliveryvehiclesaccessingthewarehouseanddistributioncentershasraisedconcernsabout change thatimpactsbothlanduseandtransportation.Theincreasedtraffic,emissions,noise The pushtositewarehouseanddistributioncenterscloserconsumersisasignificantindustry membership of112million, day andevensame-day deliveries.AimedtocompetewithAmazonPrime,whichhasanestimated as Amazon,Walmart, andTarget arecompetingtoreduceorder-fulfillmenttimesbyofferingnext Consumers areincreasinglyexpectingtoreceivethegoodstheypurchasepromptlyandretailerssuch which showsnosignsofchanging. warehouse anddistributioncentersclosertoconsumersaspartoftheirregionalnetworks,atrend dependable andquickerdeliverytimeshasresultedine-commercecompaniesaddingsmaller The dramaticincreaseofe-commerceishaving majoreffectsonlanduse.Thepressuretomaintain noting that these facilities are frequently locatedwhereaccessbypublictransitislimited. noting thatthesefacilitiesarefrequently both substantialamountsoflandandeasyaccesstotheregionalhighway andrailnetwork.Itisworth centers outsideofurbanareas.Primarilylocatedinindustrially-zonedareas,thesefacilitiesrequire At thesametime,thereissignificantdemandtositelargee-commercewarehouseanddistribution income neighborhoodsandcouldcreatedisproportionateimpacts. urbanized areastomeetdemand,thesecentersmay besituatedincommunitiesofcolorandlower- before theGreatRecession. the demandforindustrialspaceinNorthAmericaexceededsupply2019firsttimesince industrial realestate,particularlyinurbanareas.AccordingtoestatefirmCushman& Wakefield, The competitiontoaddwarehouseanddistributioncentershasresultedinahighdemandfor is anintegralcomponentofthe“lastmile”deliveryprocess. times andexpenses.Subsequently, theplacementofwarehouseand distribution centersinurbanareas the sitingofsmallerwarehouseanddistributioncentersclosertoconsumerssaves onbothdelivery Walmart Plus,inSeptember2020. Astransportationisthegreatestcostaspartofe-commercelogistics, 4 AccordingtoareportbytheIndustrialAssetManagementCouncilandSocietyof 3 2 IndustrypublicationsreportthatwarehouserentsintheBoston-area Walmart deliveries, launcheditsownmembershipserviceforfree 1 10 6 Asthedistributioncentersarelocatedwithin 9 5 7

8 total squarefootagecouldexceed12millionfeet. planned developmentisanestimated7.3 millionsquarefeet.Ifallplannedfacilities becomeoperational,the alone. AsshowninTable 1andFigure8, existingsquarefootageisapproximately4.79millionfeetand pipeline. Whiletheoldestofthesefacilitiesbecameoperationalinlate2014, tenbecameoperationalin2020 continued expansion.AsofFebruary2021,20Amazonfacilitieswereinoperationand14 facilitieswereinthe Amazon isoneofthelargestindustrialtenantsingreaterBostonmarketandhasplansfor Amazon FacilitiesinMassachusetts Modified from https://www.mwpvl.com/html/amazon_com.htmlModified Definition ofAmazonFacilities • • • • • • demand andcanbedeliveredwithin1-2 hoursoforderplacement. within theAmazonnetwork.Packagesareusuallyshippedtodeliverystations. oneormorefulfillmentcenters region wherebythepackageshave originatedfrom e-commerce andsimilar“justintime”productdeliveries. receive, storeandredistributegoodsdesignedforrapidturnaround Sortation Center. Distribution Center (or Fulfillment Center). Delivery Station. Amazon Pantry andFresh DistributionCenter. Amazon WholeFoods Retail DistributionCenter. Amazon PrimeNow. merchandise (Pantry) or perishables or frozen merchandise(Fresh). merchandise (Pantry)orperishablesfrozen to thecustomer. Thesefacilitiesrepresentthelastleg ofthedeliverynetwork. Foods groceryproducts. Facilitieswherepackagesaresortedandthendispatcheddirectly Facilities generallyusedtosortpackagesforageographical Facilitiesthatstockalimitedlineofproductsareinhigh Abuildingspecificallydesignedto 11 Facilitieswhichservicedrygrocery AfacilitywhichservicesWhole 21 Impacts of E-Commerce in Massachusetts 22 Impacts of E-Commerce in Massachusetts Table 1.Operational Amazon andPlanned Facilities Planned Delivery Station Delivery Station Distribtion Center Distribtion Center Delivery Station Delivery Station Delivery Station Delivery Station Delivery Station Delivery Station Delivery Station Delivery Station Distribtion Center Distribtion Center Delivery Station Retail DistributionCenter Amazon WholeFoods Distribution Center Amazon PantryandFresh Delivery Station Amazon PrimeNow Delivery Station Delivery Station Delivery Station Delivery Station Delivery Station Delivery Station Delivery Station Delivery Station Sortation Center Sortation Center Sortation Center Sortation Center Delivery Station Delivery Station Fullfillment Center Facility Type In Operation 350 RevolutionaryDrive 100 MazzeoDrive 565 SquireRoad 300 DanRoad 7 NeponsetStreet 25 ComputerDrive 151 Taylor Street 39 PresitgeWay 100 IndustrialParkRoad Drive 125 GoddardMemorial 560 West Street 139 IntervaleRoad 555 HoppingBrookRoad 1600 OsgoodStreet 415 SummerStreet 15 ParkerStreet 201 BeachamStreet 500 SpragueStreet 30 NorthamptonStreet 8 IndustrialRoad 110 FordhamRoad 30 CommerceBoulevard 161 LowerWestfield Road 20 ColonialRoad 4400 ComputerDrive 732-750 EverettStreet 351 MapleStreet 330 BartlettStreet 350 BartlettStreet 1 NationalStreet Drive 1000 Technology Center Road 800 JohnQuincyAdams Highway 135 AmericanLegion 1180 InnovationWay Address Total Taunton Randolph Revere Canton Worcester Haverhill Littleton Kingston Hingham Worcester Mansfield Fitchburg Holliston andMedway North Andover Boston Gloucester Everett Dedham Boston Milford Wilmington Middleborough Holyoke Salem Westborough Norwood Bellingham Northborough Northborough Milford Stoughton Taunton Revere Fall River Municipality 12,143,900 74,500 93,200 102,000 106,698 121,000 142,000 143,000 145,000 149,000 177,000 350,000 350,000 1,500,000 3,800,000 n/a 20,400 51,000 60,500 72,300 81,900 100,200 132,300 145,000 147,000 156,500 162,700 300,000 300,000 300,000 332,000 332,700 350,300 830,000 1,015,700 Square Feet 7,253,400 4,890,500 23

As illustrated in Figure 8, current last-mile delivery stations are in Bellingham, Dedham, Everett, Holyoke, Milford, and Revere. Amazon is proposing to expand its network of last-mile delivery stations in Massachusetts with facilities in Boston, Hingham, Kingston, Mansfield, Middleborough, Salem, Taunton, Wilmington, and Worcester.12 Both existing and planned facilities are heavily concentrated in the southeastern part of the state. This is attributed to the area having proximate access to the regional highway network and a building inventory that meets building specification demands of e-commerce providers (e.g., high ceiling heights and multiple loading docks).13

Figure 8. Amazon E-Commerce Facilities in Massachusetts, 2020

Warehousing and Distribution Centers in Eastern Massachusetts

According to Colliers International, the rest of the Greater Boston industrial market (not including Amazon) has slightly under two million square feet in the construction and renovation pipeline. Colliers has identified the growing importance of two areas in the Commonwealth for the siting of warehousing and distribution: the Route 2 corridor, which provides access to Boston, Worcester, and New Hampshire; and the area south of I-495, which is proximate to the I-95/I-495 interchange.14 Colliers has also determined that interest in industrial operations has also reached beyond the Boston market. 24 Impacts of E-Commerce in Massachusetts Colliers, e-commerceisthe“majordemanddriver”inGreaterBostonmarket. Figure 9. Location ofWarehouse andDistributionCenters, Eastern Massachusetts in Figure9, warehouseanddistribution centersaredistributedthroughoutEasternMassachusetts. commercial andpropertyindustry, todevelopaninventory ofwarehouse anddistributioncenters.Asshown MAPC usedCoStar, acommercialvendorthatprovidesinformation,analytics,andmarketingservicestothe Consistent withnationaltrends,GreaterBoston’sindustrialmarketisindemandandgrowing. vacancy ratesreachedarecordlowof8.2 percentinGreaterBostonattheendof2020. Reservoir anddoesnotincludeCapeCod. Note: MAPC’sCoStarsubscriptioncoverageisforthe easternpartofthestateextendingtoQuabbin (southwest ofBoston). 3(Lowellarea),andI-95/andI-295/I-495 area), I-90/I-93/I-95(BostonI-495/Route concentrations ofbothfacilitytypesatthemajorhighway interchangeareasofI-90/I-190/I-290 (Worcester facility typescomingleandaregenerallyconcentratedalongtheregionalhighway network.Therearenodal 18 16, 17 Accordingto 15 Industrial 19 The Figure 10. Warehouses andDistributionCenters inEastern Massachusetts, 2006-2020 distribution centersinMassachusetts. noted thatnotallofthesefacilitiesoperatefore-commerce,buttheyillustratethetrendswarehousingand feet. Distributioncenterscompriseanestimated277buildings,totaling28.4 millionsquarefeet.Itshouldbe 2006. Currently, warehousefacilitiescompriseanestimated790buildingsandtotal108.6 millionsquare As showninFigure10, thenumberofwarehousesanddistributioncentershasbeensteadilyclimbingsince Source: CoStar, 2020YTD Source: CoStar, 2020YTD Distribution Centers Warehouses 25 Impacts of E-Commerce in Massachusetts 26 Impacts of E-Commerce in Massachusetts means thattraditionaltrip generationforecastingmethodsarenotapplicable. transportation impactssuch ascurbusage.Thenoveltyofthisrapidlyevolving business/operationsmodel The varietyofdeliveryvehicle ownersandoperatorsaddstothechallengeofmanaging andregulating use theirownvehiclesanddeliverwhatcannotbeaccommodated byvans. may beusedbutAmazonwillfirst hireaDSPwiththeirownvanstodeliverpackages. a programwhereindependentcontractors,calleddelivery partners,deliverAmazonorderstocustomers, owned companies,DSPsmanageemployeebenefits, compensation,andaddressliabilityissues.AmazonFlex, Amazon alsoworkswiththird-partyDeliveryService Partners(DSPs)tomakedeliveries.Independently thesite. drivers willdrivetheirdeliveryvansbacktothedistributioncenterineveninganddepartfrom scheduled toenterandleave thesiteduringoff-peakmorningtraffictimes. Afteralldeliveriesaremade, a loadeddeliveryvan,driveoutofthesite,andmakedeliveriestocustomers.Deliverydriversareusually drivers travel tothedistributioncenters,typicallybypersonalvehicle.After arriving,thedriversgetinto orders arethensorted,prepped,andloadedintohundredsofdeliveryvans.Eachmorning,van fulfillmentcentersthroughoutthenight,usually startingafter 11p.m.Customer packages inbulkfrom In general,thedailyoperationsofdistributioncentersbeginwitharrivaltractortrailersthatbring for distributioncenters. Frequently, e-commercecompaniessuchasAmazon leaseandrepurposespaceinexistingwarehouses Delivery Operations typical facilitycangeneratemorethan1,000 vehicletripseach day. and serveamarketareawithinanapproximate60-minutedrivingtimeofthesite. delivery andexpeditedeliveriestoresidencesbusinesses.Theirtypicallycovera45-mileradius personal vehiclesandthecompany canstagedeliveryvans.Distributioncentersprovide“lastmile”package the on-calldriversdonotreturntosite. in themiddleofday andusetheirpersonalvehicletomakedeliveries. Oncedeliveriesarecompleted, additional demand,on-calldriverswillbeusedtofulfill customerdeliveries.On-calldriversusuallyarrive another isloaded.Waves cancontinuethroughoutthemorning,dependingondemand.When thereis In many cases,thedepartureofdeliveryvansisscheduledinwaves. Asonewave ofvansleaves thesite, be includedintheCoStardatabase. if apropertyisownedandoperatedbythesameentitynotleased,likelyto One limitationofCoStaristhatthedataonlyrepresentscommercial/rentalproperties.Accordingly, square footageminimumof60,000 squarefeetwasapplied. properties listedas“Existing,” “UnderRenovation,” “Proposed,” and“UnderConstruction.” A clear heightsof22feetorgreater. Sitecoverageistypicallyupto50percent. MAPCincludedall for every15,000 squarefeetofRentableBuildingArea(RBA). Upto20percentofficeareawith Warehouses: Typically 25,000 square feetorgreaterinsize,boxshape,withoneloadingdock “Under Construction”withnosquarefootageminimum. parking. MAPCincludedallpropertieslistedas“Existing,” “UnderRenovation,” “Proposed,” and (RBA) andsitecoverageupto40percent.Thesebuildingsareoften cross-dockedwithtrailer buildings typicallyhave oneloadingdoorforevery10,0000 squarefeetofRentableBuildingArea 28 feetplus,uptofivepercentofficespaceandthebalancebeingwarehouse/storagespace.These distribution ofinventory. Buildingsaretypically200,000 squarefeetormore,withclearheights Distribution: Typically largebuildings,bothsingleandmulti-tenant,usedforthewarehousing CoStar Definitions 20 Distributioncentersrequirelargeparkinglotswhereemployeescanparktheir 23 Includingtractortrailers,deliveryvans,andon-call drivers, a 24 21 25 AmazonFlexdrivers 22

percent ofallmallsnationwide (approximately1,000) areprojectedtocloseoverthenextfiveyears. reached anall-timehighin2017andagain2019. closures, vacancies,anddecliningprofitsoverthepastseveralyears.Nationwide, physical-store closures Many mallsandothertraditionalretaillocationshave beencontendingwithsizableandsteady overbuild tobeabout50percent. real estateisvastlyoverbuiltintheUnitedStates,withsomeindustryexpertsestimatingamountof over thepastthreeyearsnationwide. million squarefeetofretailspacehasbeenconverted to15.5 millionsquarefeetofindustrialspace According toaJuly2020reportbyCBREGroup,Inc., acommercialrealestatefirm,anestimated13.8 percentage pointperyear. centers. Onlineshopping’sshareoftotalretailsaleshasbeenincreasingbyapproximatelyone mallsandphysical retaillocationstowarehousesand distribution landscape istransitioningfrom Despite thesesignificantandsteadydeclines,retailsalesarenotdiminishing.Rather, theretail by 11squarefeetinAustralia andbetweentwofivesquarefeetinEurope. that thereareabout24squarefeetofretailfloorspaceperpersonintheUnitedStates,followednext The UnitedSateshasmoreretailspacethanany othercountry. PriceWaterhouse Coopershasestimated Impacts ofE-CommerceonRetailInfrastructure e-commerce industry–andofcourse,couldfurtherincreasethenumbersvehiclesmakingdeliveries. the speedandintensityoftheiroperations.Suchtechnologicalinnovationsareprojectedtoaccelerate Sortation systemsandroboticsautomatestreamlineordersinsidewarehousefacilitiesincrease the dramaticincreaseine-commerce–predatepandemicbuthave beenacceleratedbyit. began duringtheGreatRecessionoflate2000s. e-commerce, hasacceleratedastowhatindustryprofessionalsreferthe‘retailapocalypse,’ which person retailstoresclose,municipalities couldfacevariouslanduseandfiscal challenges. Photo: ExampleofanUnderutilizedStripMall;MAPC 29 Theoverbuildofbrick-and-mortarretail,coupledwiththerisein 32 Dependingonwheree-commercefacilitieslocateand wherein- 27 30 AccordingtoCoresightResearch,approximately25 Bothtrends–thedeclineoftraditionalretailand 26 Brick-and-mortarretail 31 28 27 Impacts of E-Commerce in Massachusetts 28 Impacts of E-Commerce in Massachusetts Massachusetts towarehouse/distributioncenters,thelanduseimpactscouldbesignificant. Should AmazonandSimonPropertyGroupcometoanagreementaboututilizingdepartmentstoresin 2020, generatinganestimated$26 billioninrevenue2020. as DoorDash,Grubhub,UberEats,andPostmatesincreased byapproximately200percentbetween2015and billion inNovember2020, August 2019. athreefoldincreasefrom According toresearchfirmBrickMeetsClick,online grocerysalesforhomedeliveryandpickupreached$5.9 than bothrestaurantdeliveriesandeatingout. consumption relativetoeatingout.Sincethepandemic, traditionalgroceryconsumptionhasgrownfaster of restaurantsandrestrictionstotakeoutdelivery, hasreversedtheprolongedtrendofdeclininggrocery e-commerce incudesrestaurantdeliveryandprepared meals. The restaurantandgroceryindustriesareundergoingdisruptionbye-commerce.Asignificantcomponent of Impacts ofE-CommerceontheRestaurantandGroceryIndustries theCityofBostonforofficesinSeaport District. property taxbreaksfrom and anestimated$3.5 millionforafacilityinStoughton.Amazonwillalsoreceiveupto$10 approval fornearly$16millioninstateandlocaltaxincentivesadistributioncenterFallRiver Amazon hasreceivedtaxbreaksforotherfacilitiesinMassachusetts.In2015, Amazonreceived $45.5 Amazon. millioninpropertytaxesfrom agreement. Inthedecadeafter theagreementexpires,Town anticipatesreceivinganadditional this site.NorthAndoverisexpectedtoreceive$18millioninnewnettaxrevenueovertheten-year Amazon’s propertytaxbilloveraperiodoftenyears.Amazonwillnotreceivestatebreakfor a 3.6 millionsquarefootdistributioncenter. Thistaxincrementfinancing(TIF)agreementwillreduce In Massachusetts,NorthAndoverapprovedanestimated$27millionintaxincentivestoAmazonfor are moreeffectivethantaxincentivesatgeneratinglong-termeconomicgrowth. extending taxincentivestolurethesebusinesses.Thereportarguesthatinvestments inpublicservices growth andthatstatelocalpolicymakersseekingtomaximizelong-termbenefitsshould avoid Policy InstituteconcludedthatAmazonfulfillmentcentersdonotgeneratebroad-basedemployment and municipalpropertytaxesisdifficulttogaugenotyetfullyknown.AstudybytheEconomic from statesalesandincometaxes The effectofe-commerceonstateandmunicipalrevenuesthatcome State andMunicipalRevenues distribution centers.TheSimonPropertyGroupowns14 properties,mostlyineasternMassachusetts. are sitednearmajorhighways andresidentialareas,thesesitesareconsideredstrategiclocationsfor of thepropertyowner’sanchordepartmentstoresintoAmazondistributionhubs.Sincemany malls Nationwide, SimonPropertyGrouphasbeenexploringwithAmazonthepossibilityofconverting some in 2018. shopping centers,RandallParkMallwasabandonedin2009andbecameanAmazonfulfillmentcenter the RandallParkMallnearCleveland,Ohio.Touted inthemid-1970’s asoneofthenation’slargest Some mallsarebeingconverted towarehouseanddistributioncenters.Onewell-knownexampleis technology are acceleratingonlinegrocery sales.Itisforecastedthat onlinegrocerysalesare expectedtogrow There isconsensusamong industryexpertsthat,duetoconsumerdemand,investments ine-commerce Increases inthegrocerymarket areattributedtoadeclineinin-storegrocerysales, ratherthannewgrowth. Despite theseincreases,grocery deliverycomprisesanestimated4.9percentof thetotalgrocerymarket. frequency. during thisperiod–alongwithanincreaseintheaverage amountofspendingperorder andshopping than tripledtoalmost63million,andthenumberof customershasmorethandoubledtonearly39million residential complexcouldreducethevalueofpropertybetween60percentto90percent. According toareportissuedbyBarclay’s, turningaclosedmallintoane-commercewarehouseor 33 Theretrofittingofmallswithhousing,offices,andothernon-retailusesislikelytocontinue. 39, 40 41 42 Nationwide, transactions from servicessuch Nationwide, transactionsfrom Thepandemic,duetotheattendantclosure 43 Thevolumeinnumberofordershasmore 38 36, 37 34 35

the restaurantindustrytorapidlychange. ghost kitchenmodelisconsideredtohave alargepotentialmarketopportunityandtechnologyisenabling full-service restaurants.Itoffersalowercostofentry, andassuchcanbenefitnewcomers totheindustry. The model enablesexistingrestaurantstoexpandtheircustomerbasewithouthaving toinvest inandestablish staffareeliminated.Theghostkitchen rented underaghostkitchenmodelandthecostsoffront-of-house costsofrestaurantspaceandequipmentcanbeshared be lower-riskandmoreaffordable.Theup-front Opening atraditionalrestaurantcanbeexpensive,high-risk,andcomplex:ghostkitchensareconsidered to GrubHub, andUberEatsdeliverthefood. and operatedbyathird-partycompany, notarestaurant, andmealdeliverycompaniessuchasDoorDash, labor.the exceptionthatthereisnoneedforfront-of-house Thesetypesoffacilitiesaretypicallyowned dining areasforpatrons.Ghostkitchensarecomparabletoacoworkingspacerestaurantoperators,with fulfill onlineorders.Anemergingmodelandtypeoffacility, andno theseoperationshave nostorefronts facility thathousesmultiplerestaurantoperatorswhopreparefoodfortakeoutordeliveryexclusivelyto Also referredtoascloudkitchens,darkorvirtualfoodhalls,aghostkitchenissinglecommercial faced withthechallengetorevisetheirzoninglaws toaccommodateforthesenewlandusedemands. customer whowantsahomedelivery, fivecustomerswantcurbside pick-up. up –thelatterofwhichispreferredbymostcustomers.AccordingtogrocerystorechainKroger, forevery are beingconverted tooperateasdarkstoresormicro-fulfillmentcentersforhomedeliverycurbsidepick- shopping, curbsidepick-up,anddistributioncenteroperations.Inotherinstances,retailgrocerystores In somecases,retailandgrocerystoreshave becomeplacestoaccommodatevariouscombinationsofin-store serve ase-commercedistribution/spaces. for example,isadding“warerooms”totheirstores.Usuallyattachedtraditionalretailstores,warerooms ande-commercetechnology.enabling onlinesaleswithinvestments indeliveryinfrastructure Shop&Shop, To meetcurrentdemandandmaintainmarketshare,grocersareimprovingtheiroperationalefficiency likely bemoderateinthelongterm. to 20percentoftotalgroceryretailby2025. However, theoverallgrowthofgrocerysectorwillmost monitored. kitchens, especiallyastheypertaintostreetvitalityandlocaleconomiesareunknown,butshouldbe Photo (right): ACurbsidePickUpSign-Dedham Stop &Shop,MAPC Photo (right): Delivery&PickUpPrepRoom-DedhamStop &Shop,MAPC Photo (left): 44, 45 46 48, 49 Thelong-termlanduseimplicationsofdarkstoresandghost 47 Municipalitiesareincreasingly 29 Impacts of E-Commerce in Massachusetts 30 Impacts of E-Commerce in Massachusetts Pandemic Context ofCOVID-19 Chapter 4: both in-persondestinationsanddistributioncenters ofonlineorders. staffing oflocalretailfacilities,alongwithincreased deliverytraffic,asstoresandrestaurantsbecome these habitsmay continue.Any long-termshifts willlikelymeanchangesinthephysical layout and have notpreviouslyattempted. Once shoppinghabitsaredevelopedduringtheCOVID-19 pandemic, The pandemichaspromptedmorehouseholdstotry theirhandate-commerceservicesthattheymay four majorareas ofimpact The roleoftheCOVID-19 pandemicinthespikeU.S.onlineretailsales2020canbebrokeninto of theCOVID-19 pandemicarelesscertain,muchoftheshift toe-commercewilllikelyremain. impacting e-commercewerealreadyunderway priortothepandemic.Although thelong-termimpacts While COVID-19 hasacceleratedcertainconsumerpatternsandbehaviors, many ofthetrends Context ofCOVID-19 Pandemic continued toshopforgroceriesonlineevenastheyalsophysically returnedtofoodstores. of consumershave triedonlinegroceryshoppingforthefirsttime.Ofthat21percent,many have orders viaAmazonFreshandWholeFoods.SincethepandemicstartedinMarch2020, 21percent which meansincreasestocurbsidetrafficanddeliveries tohouseholds. and otheronlinerealtorsincreasethenumberofwarehousesdistributioncenters. changes inurbanandsuburbanlanduses,asmallsshoppingcenterscloseAmazon which willshatterthe2019recordof9,800 closures.TheCOVID-19 pandemicisaccelerating experts anticipate15,000 to25,000 storeclosuresintheU.S.2020, mostlyinmalls;aprojection “touch free pickup”willcontinuetogeneratetraffic,bothonlineandin-person. “touch free either in-storeoratthecurb.Retailerswhohave invested intheironlinepresencewithsameday up theirordersatlargerbrick-and-mortarretailers,includingTarget, Walmart, andHomeDepot, delivery optionsduringthepandemic.Many have statedthattheywillretaindeliveryoptions, Accelerated growth inonlinerestaurant orders: More onlinegrocery purchases: Increased growth in“click shopping: andcollect” Growth innon-store shoppingandgreater downturns inbrick-and-mortar retail largest onlineretailer, saw itsbusinessincreaseby43percentin2020. car, van,andtrucktraffic. and loadingfortrucksvans.Measurestorepurposethesefacilitiescouldcauseincreasesin parking lots.Parkingareasmay needlesscustomerparking,butmorespaceforcurbsidepickup into bothin-personshoppinganddistribution/fulfillmentcentersmay requiretherepurposingof : Amazon’s growthin2020hasbeenledbytheirgrocery Over 40percentofrestaurantssurveyedadded Customers have learnedtoorderonlineandpick 1 Bycomparison,industry : Amazon,the 3 Storesmorphing 4 5

31 Impacts of E-Commerce in Massachusetts 32 Impacts of E-Commerce in Massachusetts Additional ResearchAreas Future Trends and Chapter 5: Figure Retail 11.Omni-channel experiences. Presently, theleadingretailersinthisspaceareTarget andWalmart. video soon.Omni-channelretailwillsuccessfullyleverageandblendtheonlinein-storeshopping social mediaandisanticipatedtoapplyemergingtechnologiessuchasaugmentedrealitypersonalized Facilitated bytechnologyandbasedonpredictingcustomerbehaviors, theomni-channelbusinessmodeluses manages inventories (Figure11). personalized shoppingexperience.Duetocentralizeddatamanagement,omni-channelretailsimultaneously laptop). Thegoaloftheomni-channelretailbusinessmodelistoprovidecustomerswithaseamlessand channel. Omni-channelretailintegratesmultiplesaleschannels(e.g.,brick-and-mortarstore,smartphone, It isprojectedthate-commercebyitselfwillnotbethefutureofretail.Rather, e-commercewillbeomni- Omni-channel Retail following thesetrendsandmay studythemfurtherinthefuture. work, butwhichmay beofinteresttomunicipalities,policyanalysts,andothers.MAPCwillcontinue While writingthisreport,MAPCuncoveredseveraltrendsandtopicsthatwerebeyondthescopeof shopping, thesitingofwarehouseanddistributioncentersbrick-and-mortarstores,trippatterns. omni-channel retailwillallowforabetterunderstandingoffuturee-commercetrendsinin-personoronline 1, 2 Furtherresearchof 33 Impacts of E-Commerce in Massachusetts 34 Impacts of E-Commerce in Massachusetts information can informupdatestozoning andbuildingcodesthat wouldenablemoreefficient deliveries. of thepandemicstateemergency. signed tolaw byGovernorBakerinJanuary2021, approveda15percentcaponthesefeesfortheduration as securestorage areasfordeliveries. for groceries. Thedesignofsingle-family housescouldincluderepurposing porchesandgarages toserve areas will increasinglyneedtobe designedwithsufficientstorageforpackagesand withrefrigerated designed fortheheavy volumes ofpackagescurrentlybeingdelivered.Forexample, residentialbuildings can beexpectedtoaffect the designofresidentialandcommercialbuildings, most ofwhichwerenot As notedinChapter1,e-commerce anddeliveriescreateaneedformoreparcel deliveryandstorage.This Residential andCommercialBuilding Design percent. delivery commissionfeesbasedonthepurchaseprice. Thefeesareusuallybetween20percentand30 Postmates toplaceorderswithrestaurantsfordelivery. Thesethird-partyplatformschargerestaurants Many consumersusethird-party, app-baseddeliveryplatformssuchasGrubhub,UberEats,DoorDash, and Third-Party DeliveryServiceFees feet ofwarehouse/distributionspace,whileane-commerceretailerneedsabout1.2millionsquarefeet. In otherwords,togenerate$1billionofrevenue,atraditionalretailerneedsabout350,000 to400,000 square approximately threetimesthewarehousespacetogeneraterevenuescomparablebrick-and-mortarsales. Prologis, anowner, operator, anddeveloperofindustrialrealestate,estimatesthate-commerce retailersneed offering click-and-collectoptions.Thisfurtheramplifiesthedemandforwarehouseanddistributioncenters. An increasingnumberofretailersareincorporatinge-commerce,includingmakingmoredeliveriesand Shifts intheWarehouse andDistributionCenterMarketplace programs. which save bothspaceandfuel,butwhicharenotrecyclableinsomelocalsingle-streamrecycling that arenotalways recyclable.Recently, Amazonhasturnedtolighterweightplasticenvelope mailers, Increasing e-commercecreatesgreaterdemandforcardboardandrecycling,aswellpackingmaterials Waste andRecycling by theseearlyadopters. of vehiclesthatarebeinginvested in,andhowothere-commercecompaniescanreplicateprograms Additional researchisneededtobetterunderstandhowtheseprogramsarebeingdeployed,thetypes to have 10,000 electricdeliveryvansontheroadby2022and100,000 by2030. In September2019, AmazonannouncedaClimatePledge.AspartofthePledge,plans goals toattaincarbonneutralityandaremakinginvestments intheelectricvehiclemarket. E-commerce logisticsanddeliverycompaniessuchasAmazon,Walmart, andUPShave announced Sustainable Logistics of last-miledeliverieswithgreenvehiclesby2025, andreduceitslogisticsemissionstozeroby2050. of warehouseanddistributioncenterstherealestatemarketplaceinMassachusetts. research isneededonhowtheshift ofin-personretailtoonlinebusinessmodelsaffectthesizeandspacing materials areaffectingtheproductionofpackaginginMassachusettsaswellwasteandrecycling. interests ofthird-partydeliverycompaniesandtherestaurants servicedbythem. convert toanall-electricvehiclefleet. aiming forzerocarbonemissionsby2040allitsglobaloperations.Partofthisinitiativeisto In September2020, Walmart announcedaninitiativetoreduceitsglobalcarbonfootprintandis launched a$2billionfundtohelpattaincarbonneutralityby2040. electric truckstoitsfleet, 12 TheEconomicDevelopmentBondBill,whichwaspassed bytheMassachusettsGeneralCourtand 10 Additionalresearchisneededtounderstandhowthegrowthandchangesinpackage 7 andDHLhaslaunchedaGoGreeninitiativethataimstoperform70percent 13, 14 15 6 Researchisneeded toidentifypotential designpractices.This Similarly, inJanuary2020, UPSannouncedplanstoadd10,000 Itisexpectedthatthislegislationwillbalanceboth the business 4, 5 InJune2020, Amazon 3 8, 9 8, 11 More Responses toE-Commerce Potential Policy Chapter 6: 35 Impacts of E-Commerce in Massachusetts 36 Impacts of E-Commerce in Massachusetts respond tofacilityproposals. impacts andsustainably managethese innovations. service. Whereneeded,the Commonwealth andmunicipalitiesshoulddevelopregulationsto minimize standards fortrafficcongestion, GHGemissions,safety, waste, employment,workers’rights,andequitable campuses. RPAs andothersshouldmonitor thesenewdevelopmentsagainstpublic-sector performance pilot programswithcargo bikes,autonomousvehiclesanddronesinselectareas suchascollegeandmedical have implemented packagelockerstomakethelast-mile delivery processmoreefficient,andimplemented e-commerce industrytoensurethatthesedevelopments have positiveimpacts.Amazon, UPSandothers The Commonwealth andregionalplanningagencies shouldtracknewtechnologiesandinnovationsinthe Track InnovationsinE-Commerce using commondelivery/pickupareassuchaspackage lockers,andnotchoosingexpediteddeliveries. for themoresustainabledeliveryoptions.Theseoptions canincludecombiningordersintoasingledelivery, and GHGemissions,thensettingafeestructure thatincentivizesbothcompaniesandcustomerstoopt GHG impacts.Thiscanbedonebydeterminingamethod toassesstheimpactofe-commerceoncongestion Both thepublicandprivatesectorsshouldincentivize moreefficientdeliveriestoreducetrafficandassociated Create IncentivesforEfficientDeliveries legislation authorizingstateagenciestorequirethisdatamay beneeded. collection isacriticalstepinunderstandingandsustainablymanagingtheimpactsofe-commerce.New transportation impacts(e.g.,truckandothervehicletraffic)ofe-commercelogisticsdelivery. Thisdata location ofwarehouseanddistributioncenters;employment(status,occupation,wages,benefits); The Commonwealth shouldrequiree-commercecompaniestoreportinformationandmetrics,suchas the Increase Transparency intotheGrowingE-Commerce Industry standards). reduce conflictsonroadways, andrequiringtheuseofcleanervehicles(e.g.,compliancewithEPA emission include designatingtruckroutestoavoid residentialneighborhoods,implementingsafetymeasuresto specific facilityproposalsthroughalensofequity, sustainability, andmunicipalfinance.Standards may playbook formunicipalities.Thiswouldhelpmunicipalitiesimplementdevelopmentstandardsandreview The regionalstrategyshouldalsoincludethedevelopmentofanonlinetransportationandlandusedesign mile deliveryservices. Boston andelsewhere,itcanalsospelloutways thatmunicipalitiescanpromotelow-carbon,low-trafficlast- lessonslearnedin local regulationsthatmanagethegrowthandimpactsofe-commerce.Drawing from comprehensive strategycanalsoidentifyspecificrecommendationsforzoning,buildingcodes,andother It canestablishperformancemetrics,evaluationcriteria,andformulasfordeterminingmitigationfees.A management policies,equitableemploymentpractices,taxincentiveprograms,andoperationsmonitoring. A comprehensivestrategycanincludestandardsforfacilitysitinganddesign,transportationdemand traffic managementwiththeneedsofprivatesector. planning.Thestrategyshouldbalancetheregion’svisionandgoalsforemployment,landuses, freight impacts andtodevelopacomprehensive,regionwide strategythatcaninformlong-rangeplanningand Municipalities mustcoordinatewithoneanotherproactivelytounderstande-commerce’scumulative Regional CoordinationAmongMunicipalities goals fortheregion. facilities, andtheirapproachesshouldalignwithadvancetransportation,economic,sustainability Municipalities have animportantroleregardingthesitingandoperationofdistribution/warehousing via theCommonwealth (agencytobedetermined)andmay requirestatelegislationtoimplement. should bedoneregionallythroughregionalplanningagencies(RPAs). Somestrategiescouldbeimplemented 2 Withacommonplaybook, everymunicipalitywillbeinabetterpositiontoconsistently 1 Whilemany ofthefollowingstrategiescanbeimplementedonlocallevel,others efficient useofcurbspaceandtoreduceemissionscausedby“cruisingforparking”engineidling. delivery ofgoods.Thefollowingrecommendationsmanagethecurbareanticipatedtopromoteamore e-commerce. Thechallengeistomanagethispublicright-of-way forallusers,ratherthanjusttheefficient curbside congestion.Controllingcurbspaceservesmultiplefunctions,includingprovidingaccessfor The explosivegrowthine-commercedeliveriesandride-hailingisspurringmunicipalendeavors tocontrol Implement CurbManagementStrategies (e.g., agrocerydeliverywillcostmoreifdeliveredat5:30pm). hightrafficstreets,andpeak-periodsurchargesfordeliveries designed pick-upzonesaway from parking ofprivatevehicles. reserved fordeliveriesandothershort-termusesatmid-day, andthen allowedforovernight for flexibleuses.Forexample,curblanescouldbereservedbusesinpeakcommuteperiods, appropriately. Thedesignationfordeliveriescouldbebothbylocationandtimeofday toallow policies shouldberevisedtoensuremobilitygoals(andothergoals)arebeingmet. re-evaluation continuous Conduct andviolations ofcurbuses Establish comprehensive andeffective enforcement mechanisms utilization ofdesignated spaces. to pay for ofdoingso, theprivilege that usingadynamicpricingmodel will maximize efficient Establish for mechanisms delivery andTNCsto companies reserve and asneeded spaces those vehicles. acomprehensiveConduct ofcurbdemandanddesignate assessment for spaces theuseofdelivery especially forviolationsintransitandactivetransportationfacilities. enforcement andcamera-orGPS-basedwithpenaltiessanctionsforviolations, Thereshouldbesufficientnumbersofthesespaces,andtheydistributed ExamplesincludeprovidingdiscountsforTNCriderswhowalkto to determineifthecurbmanagement thatcanutilizebothin-field 3 37 Impacts of E-Commerce in Massachusetts 38 Impacts of E-Commerce in Massachusetts for FurtherResearch Next StepsandAreas Chapter 7: 38 Impacts of E-Commerce in Massachusetts revenue, andothertopics. workforce inCommonwealth, thescaleofindustry, tax andits emissions, oncongestion, impacts investigatingContinue available data sources to betterunderstand ofthe e-commerce thecomposition Data Collection Management ofWarehouse andDistributionCenters,DataSharingLegislation,InformationSharing. To collectinformationandmeetthischallenge,MAPChasidentifiedthefollowingsteps:DataCollection, critical regionalandlocalgoals. a betterpositiontobothmanagethegrowthofe-commercesectorandensureadvancement significant socialandeconomicconsequences.Adeeperunderstandingwillputthepublicsectorisin Much moreworkneedstobedoneunderstandthisenormousandrapidlychangingindustryits shifting employmentandtaxrevenues. including theenvironment (e.g.,packagingwaste),safety, employeerightsandbenefits,equity, and Finally, thegrowinge-commercesectorhasimpactsinotherareasnotexploreddetailthisreport, on brick-and-mortarretail,andlanddevelopmentneedsforwarehousedistributioncenters. we knowlittleaboutessentialdetailssuchastripgeneration,GHGemissions,localandregionalimpacts abundant evidencethate-commerceisasignificantandgrowingpartoftheCommonwealth’s economy, Commonwealth, particularly with regard to land use and traffic. As this report makes clear, while there is This reportidentifiedtrendswheredatawas available todeterminetheimpactsofe-commerceonour Additionally, moreimmediatedatacollectionandanalysis needstobedoneinthefollowingareas. can helpshedlightontheseissues. work withstateagenciesandmunicipalofficialstoidentifygainaccessadministrativedatathat transportation networkandemploymentallneedtobebetterunderstood.MAPCotherRPAs should leave, andhealthinsurancebenefits. positions, arefilledbyindependentcontractorswho may have limitedornoretirement, paid could uncovertheextenttowhichgrowingnumber ofe-commercejobs,particularlydelivery in-persontoonlineretailintheCommonwealth. Furthermore,thisresearch of theshift from This researchwillenablepolicymakerstobetterunderstand theeconomicandequityimpacts demographics. Research inMassachusetts thechanges retail andotherkey employment sectorsby and income Research versus onlinesales traditional retail inMassachusetts. impacts oftheshifting retaillandscape. policy makersdeterminebetterways tomanagethelanddevelopment,employment,andtax Commonwealth. Understandingthelevelofe-commerceretailinMassachusettswillhelp can shedlightongeographicdifferencesofe-commerce’simpactstraditionalretailinthe brick-and-mortarretailsales Massachusetts comparewiththenation.Regionaldatafrom This researchwilluncovertheextenttowhichonlineretailtrends(andtheirimpacts)in Theimpactsofe-commerceonmallsandtraditionalretail,landuse,the

39 Impacts of E-Commerce in Massachusetts 40 Impacts of E-Commerce in Massachusetts varies accordingtodemographicfactorssuchasage, income,andautomobileownership. of deliveriesperhousehold,andtheextenttowhich thenumberofdeliveriesperhousehold population. Thisinformationcouldbeusedtobetterestimatevehiculartraffic,thenumber provide statisticallysignificantresultsatthesub-regionallevelandforspecificsegmentsof agency woulddeveloppartnershipsandsolicitfundingforabroad-basedsurveythat whether aMassachusetts-focusedsurvey of e-commerce consumer patterns is needed.Ifso,the replacing personaltrips.Baseduponsimilarnationalsurveydata,MAPCshoulddetermine More specificsurveydataareneededtodeterminetheextentwhichonlineordersmay be distribution andwarehousecenters. practices, andtoimplementlocaloptionsmoderatetrafficotherimpactsofe-commerce new deliverysystems(e.g.,e-cargobikes,electricvehicles),todeployinnovativecurbmanagement fromthesestudiescouldbeusedtocreatepilotprogramsfor traffic anddeliverytrends.Findings e-commerce warehouseanddistributioncenters,congestedurbanareastobetterunderstand This informationcouldbeobtainedbyconductingstudiesoflargerscaleresidentialbuildings, and privateinvestment, thelong-termimplicationsareunclear, andmoreresearchisneeded. incentive programs,suchasTIFs,encouragegrowthbyloweringtaxesinexchangeforjobcreation municipalities thathostmoree-commercewarehousesanddistributioncenters.Whiletax experience mallandothertraditionalretailclosures,abouttheeconomicimpactsto More needstobeunderstoodaboutthetaxrevenueimplicationsformunicipalitiesthat Investigate available sources ofdata preferences consumer about andshoppinghabits. Analyze onlinedelivery vehicle patterns andvolumes. Research ofe-commerce. fiscalimpacts themunicipal Research inMassachusetts thechanges retail andother key employment sectorsby geography. disproportionate impacts. centers arebeingsituatedincommunitiesofcolorandlower-incomeneighborhoodscreating if, asdistributioncentersareincreasinglylocatedwithinurbanizedareastomeetdemand,these operations couldcreatenegativetraffic,noise,andairqualityimpacts.Itisimportanttoknow Not alle-commercewarehouseanddistributionareaccessiblebypublictransportation,their

centers asaresourceforothermunicipalities. report, willdevelopadocumentonthemanagementofe-commercewarehouseanddistribution and managingtheimpactsofwarehousedistributioncenters,asanearlyfollowuptothis MAPC hasbeenconductingresearchonhowmunicipalitiesinMassachusettsarecurrentlymitigating to higherdensityresidentialareas. deliberate design,mitigation,andmanagement,especiallywheree-commercefacilitiesareproximate generation rates. and distributionfacilities.Thisinformationwillalsoaidinright-sizingmitigationforecastingtrip distribution centerprojects,identifyingexamplepolicies,andassessingthecumulativesitingofwarehouse A consistentdatacollectionmethodwillenableaapproachtomonitoringwarehouseand The collectedinformationwillbepubliclyavailable andconfiguredtoallowforcomparativeanalysis. advocacy partnersandlegislativesponsors. rights, safety, traffic,equity, andthe environment. Theadoptionoflegislationwillrequirethecultivation visibility inthee-commerceindustryandsustainablymanageitsimpactsemploymentworkers’ been determined that informationbeen isnotavailable. to toagencies companies provide require e-commerce data where ofcriticalpublicconcern onimpacts ithas Create includingfindingsfrom aresearch pilotprograms. local one-commerce, clearinghouse facilities statewide, andevaluate compile, Regularly collect, and monitoring permitting documents for warehouse anddistribution Information Sharing from theadditionalresearchabove, Based uponthefindings Data SharingLegislation warehouse anddistributioncenters. anddistribute steps andexample actionable Collect practices for for municipalities thereview of Management ofWarehouse andDistributionCenters to contributeaspartofthiseffortwellbeinformedfutureinitiatives. surveys andpilotprograms.Pleasee-mailecommerce@mapc.orgwithrelevantinformationyouwouldlike planning agency,from MAPCintendstoserveasaresource forcontinuedinformationsharingandfindings includinginformationabouteconomicincentiveprogramsandtaxrevenuecollections. Theintegrationofwarehouseanddistributioncenterswillrequire AsnotedinChapter6, thislegislationisneededtocreate draft legislation that willauthorize state As aregional 41 Impacts of E-Commerce in Massachusetts 42 Impacts of E-Commerce in Massachusetts Distribution Centers Warehouses and Steps toManage Playbook ofActionable Appendix: 42 Impacts of E-Commerce in Massachusetts this sectionwillbeexpandedasongoingworkcontinuesandtoreflectchangesintheindustry. structured soastoestablishclear, thesite. enforceableperformancemetricsforvehicletripstoandfrom manual, tripforecastingshouldbebasedonproponent'splansforfacilityactivity;andpermits Since complexlogisticsfacilitiessuchaswarehouseanddistributioncentersarenotincludedintheITE Presently, theInstituteofTransportation Engineers(ITE)Trip GenerationManual Trip Forecasting Traffic ImpactStudies Review recommendationsfortheHinghamcontributedtodevelopmentofthischapter. are basedonthatresearch.Inparticular, Everett’ssiteplanapprovalprocessandtheTraffic EngineeringPeer the impactsofwarehouseanddistributioncenters.Severalactionablestepscontainedinthischapter MAPC conductedresearchonhowmunicipalitiesinMassachusettsarecurrentlymitigatingandmanaging actionable step;ratherseveralstepsneedtooccursimultaneously. distribution centerbeproposedfore-commercerelatedservices.Itisimportanttonotethattherenotone Below areactionablestepsformunicipalitiestoconsiderimplementingshouldawarehouseand/or management, especiallyiftheyareproximatetohigherdensityresidentialareas. The integrationofwarehouseanddistributioncenterswillrequiredeliberatedesign,mitigation, document withlocaldatathathave beencollectedatsimilarsites.” empirical tripdata.AccordingtoITE,“Whenpractical,theuserisencouragedsupplementdatain this Trip GenerationManualdoesnotincludedata forasimilarlanduse,MAPCrecommendstheapplicationof Parcel HubWarehouse (156)arerelated,theynotanexactmatchfore-commerceoperations.IftheITE Industrial Park(140), Warehousing (150),HighCubeFulfillmentCenter Warehouse (155),andHigh-Cube use typethatisdirectlyapplicableforwarehouseanddistributioncenters.WhileITELandUseCodes At aminimum,trafficimpactstudiesshouldincludethefollowing: • • • • Amount ofparking. Accommodations forpedestriansandbicyclists. Site design(ingress,egress,andcirculation). Projected tripsforallvehiculartypes(e.g.,employeevehicles,vans,trucks,andflexdrivers). 3 2 doesnotincludealand 1 MAPCanticipates 43 Impacts of E-Commerce in Massachusetts 44 Impacts of E-Commerce in Massachusetts the facilityonnearbyneighborhoods. during certaintimesofthe day/or day ofweek.Thismeasurecanreduce congestionandtheroadimpactsof Where appropriate,suchas whereawarehouseisadjacenttoresidentialarea, restricttruckandvanaccess Restriction Zones monetary contributions. Traffic mitigationagreementscanincludetheinstallationoftrafficsignals,intersectionimprovements, and Negotiate appropriatetrafficmitigationagreements. Traffic Mitigation Site PlanReview follows: Traffic frequentlyexpressregardingwarehouseanddistributioncentersareas concernsresidents following: A comprehensivesiteplanreviewandapprovalprocessshouldaddresstheadequacyof • • • • • • • • • • • • • • • • • Processions oftrucksandvanscausingtrafficatkey intersections. Vans pulledofftothesidesofroadscreatinghazardousconditionsfordriverspass. Illegal off-siteparking. Vehicles overwhelminggasstationswhenshifts beginorend. Trucks andvansutilizingresidentialstreets trucksaccessingbridgeswithlowunderpasses. Queuing, traffic,andidlingon-siteinthecommunity. Compatibility ofArchitecturewithSurroundingArea Protection andEnhancementofNaturalFeatures Snow RemovalandStorage Utilities Stormwater Landscaping andScreening External Lighting Traffic flow, Circulation,and TrafficImpact Proposed NumberandType ofParkingSpaces Parking andLoadingFacilities Building Design • • • • • • • Methods of waste disposal (e.g., sewage and refuse) andwaterdistribution Methods ofwastedisposal(e.g.,sewageandrefuse) Method ofsurfacedrainage development fromadjacentlanduses Type, quality, andquantitytopromoteanaestheticallypleasingenvironmentproperlyscreenthe Type andamounttobeprovided Pedestrian andbicyclecirculationsystemstofromparkingareasstructures Access pointsandroutestofromthesiteadjoiningstreets number ofparkingspacesissufficienttomeetthepredicteddemands. Delivery ServiceProviders(DSPs)vansanddrivers,etc.)inordertodemonstratethattheproposed use(i.e.,associates/managers,visitors, Provide abreakdownoftheparkingdemandsbyfunctional 4 and implemented. Correctiveactionsshould bedocumentedinthe trafficmonitoringreport. intersections, correctiveactions toreducetheunmitigatedimpactofproject shouldbeproposed and/or thecalculatedmotor vehiclecrashratesexceedtheMassDOT average crashratesforsimilar the projectedtrafficvolumes bymorethan10percent(i.e.,110ofthe projectedtrafficvolumes) In Hingham,itwasalsoproposed thattotheextentmeasuredtrafficvolumes fortheprojectexceed volumes fortrucks,vans,andpassengervehicles. Any monitoringprogramshould includeestablishedthresholdsfortrafficand/ormotorvehiclecrash Certificate ofOccupancyfortheProjectandberepeated annually. Hingham recommendedamonitoringprogramthat will commencewithin90days oftheissuancea Including atrafficmonitoringprogramisessential. Forexample,the TrafficEngineeringPeerReviewfor Project MonitoringPostOccupancy andCorrectiveActions speeding) procedures. Be informedoftruckandvandriverprotocolssuchastraining,discipline,incident(e.g., insured andperformdriverbackgroundchecks. Prior tomakingdeliveries,requireallDeliveryServiceProvider(DSP)companiesbeproperly Truck andVan Drivers Do notpermitonoroff-siteidlingforallvehiclesservicingthefacility. Idling To promotepublicawareness andsafety, ensurethatvehicles(e.g.,vans)andthesiteareappropriatelysigned. Vehicular andRoadway Signage sited sothemunicipalitycancaptureexcisetax. A proposedfacility’svansshouldberequiredtoregisteredinthemunicipalitywherefacilityis Excise Tax stations whenshifts beginorend. times (e.g.,onreturntrips)andlocationsforrefueling.Thiswillhelpensurevansdon’toverwhelmgas traffic andqueuing,municipalitiesshouldworkwithe-commercecompaniestodetermineappropriate It iscommonpracticefore-commercecompaniestoassignfuelcardsdriversorvehicles.To manage Fueling Operations bike racks,carpoolingincentives,andashuttleserviceaccessingtheCommuterRailMBTA Stations. by singleoccupancyvehicles.TDMcomponentscanincludediscountedMBTA passes,internallysecure Implement aTraffic fromtraveling DemandManagement(TDM)programthatwilldiscourageemployees Traffic DemandManagement(TDM)Program different vehicletypes,pedestrians,andbicyclists,tominimizevehiclesqueuinginthestreet. remain on-site.Itcriticalthattheon-sitecirculationplanbedesignedtoreducepotentialconflictswith To minimizelogisticalandtrafficissues,itisrecommendedthatparkingforallvehicularoperations Off-Site Parking 45 Impacts of E-Commerce in Massachusetts 46 Impacts of E-Commerce in Massachusetts fulfilled-the-changing-local-geography-of-e-commerce/. eCommerce,” Brookings,September11,2018, https://www.brookings.edu/research/where-will-online-orders-get- 16 AdieTomer andJosephKane,“Where WillOnlineOrdersGetFulfilled?TheChanging Local Geography of warehouses-in-neighborhoods. September 16, 2020, https://www.bloomberg.com/news/articles/2020-09-16/amazon-plans-to-put-1-000- 15 SpencerSoper, “Amazon PlanstoPut1,000 Warehouses inSuburbanNeighborhoods,” Bloomberg, November 2017, https://nacto.org/tsdg/curb-appeal-whitepaper/. Leadership, “CurbAppeal:CurbsideManagementStrategies forImprovingTransit Reliability,” NACTO, 14 InstituteofTransportation Engineers, “CurbsideManagementPractitionersGuide,” andNACTO Transit Paris andNYC, QuantitativeSurvey,”Practices: CrossingViewsfrom November2018. 13 6t-bureauderechercheandN.Y.U. RudinCenterforTransportation, “Online Consumption andMobility Transportation Institute,January2017. 12 SarahOvermeyer, “HowWillMillennialsImpactFreightFlowsinTexas?” PRC16-63F,Texas A&M . fhwa.dot.gov/policyinformation/statistics.cfm 11 U.S.DepartmentofTransportation, DOT Table VM-2, 2010and2019, Highway StatisticsSeries,https://www. 2018. Facilities,” presentationatNPC188263, EffectsofeCommerceonLandUse,NationalPlanningConference 10 IsabelCañete-Medina,AICP, Cañete-MedinaConsultingGroup,Inc,“EvolvingTrends ineCommerce during-pandemic-survey-reveals. News, August 3, 2020, https://news.rpi.edu/content/2020/08/03/consumer-behavior-has-shifted-significantly- 9 Torie Wells, “ConsumerBehavior HasShifted SignificantlyDuringPandemic,SurveyReveals,” Renssalaer sentiment-during-the-coronavirus-crisis. 2020, https://www.mckinsey.com/business-functions/marketing-and-sales/our-insights/survey-us-consumer- 8 McKinsey&Company, “Survey:USConsumerSentimentDuringtheCoronavirus Crisis,” December8, delivery---pickup. https://www.brickmeetsclick.com/nov-2020-online-grocery-scorecard--customer---sales-mix-shift-toward- 7 BrickMeetsClick,“November2020Scorecard:Customer&SalesMixShift Toward Delivery&Pickup” businessofapps.com/data/food-delivery-app-market/#1.1. united-states; andBusinessofApps,“FoodDeliveryAppRevenueUsageStatistics(2021),” https://www. 6 Statista,“OnlineFoodDelivery,” (2021),https://www.statista.com/outlook/dmo/eservices/online-food-delivery/ restaurant. Doesnotincludedeliveriesofnon-processedornon-preparedfood(e.g.,HelloFresh). and deliverybothcarriedoutbyaplatform(e.g.,Deliveroo),3)onlineordersthatarepickedupinthe ordered viaaplatform(e.g.,DeliveryHero)orrestaurantwebsiteDomino’s),2)onlinemealorder 5 Includesmealsorderedonlinewhichare:1)directlydeliveredbytherestaurant,regardlessiftheyare 4 SeesourceslistedforTable 1inmainbodyofreport. amazon-is-getting-closer-your-door/. Boston Globe,December5, 2020, https://www.bostonglobe.com/2020/12/05/business/deliver-more-goods-faster- 3 TimLoganandJanelleNanos,“To DeliverMoreGoodsFaster, AmazonisGettingClosertoYour Door,” 2 U.S.CensusBureau,“MonthlyRetailTrade Report,” 2021,https://www.census.gov/retail/index.html . 1 DigitalCommerce360, “USEcommerceSales,” 2020. Executive Summary Endnotes streets-part-one-the-value-of-the-curb/. Streets, PartOne: TheValue oftheCurb,” https://www.kittelson.com/ideas/curbside-management-on-urban- 8 Alek Pochowski,MattBell, MeredythSanders(Kittleson&Associates),“Curbside ManagementonUrban estimates-as-online-sales-grow.html. grow,” CNBC.com,April9, 2019, https://www.cnbc.com/2019/04/09/75000-more-stores-need-to-close-ubs- 7 LaurenThomas,“75,000 morestoresneedtocloseacross theUS,UBSestimates,asonlinesalesandAmazon gov/retail/index.html. how-high-will-e-commerce-sales-go andU.S.CensusMonthlyRetailTrade Report,2020, https://www.census. services/real-estate-industries/omnichannel/the-definitive-guide-to-omnichannel-real-estate/by-the-numbers/ U.S. CensusBureau.SeeCBRE,“HowHighWillE-Commerce SalesGo?”, 2018, http://www.cbre.us/real-estate- from the CBREdonein2018withJuly2020e-commercefigures 6 Comparinge-commerceprojectionsfrom sentiment-during-the-coronavirus-crisis. 2020, https://www.mckinsey.com/business-functions/marketing-and-sales/our-insights/survey-us-consumer- 5 McKinsey&Company, “Survey:USConsumerSentimentDuringtheCoronavirus Crisis,” December8, news/world/drones-are-poised-to-reshape-home-design-11607247643367.html. Journal, “Dronesarepoisedtoreshapehomedesign,” updatedDecember6, 2020, https://www.livemint.com/ November 7, 2019, https://www.nytimes.com/2019/11/07/realestate/where-the-packages-go.html retail-impact-residential-architectural-design/; RonnieKoening,“WherethePackagesGo,” NewYork Times, 4 ACEScene, “Onlineretailcouldimpactresidentialarchitecturaldesign”, https://aecscene.com/2017/11/online- future-of-commerce.com/2020/01/19/what-is-e-commerce-definition-examples/ from Jenn 3 Modified Van Sande,“Whatise-commerce?Definition,benefits,examples,” https://www.the- or may notbemadeonline.” Seehttps://www.census.gov/retail/mrts/www/data/pdf/ec_current.pdf. Electronic DataInterchange(EDI)network,electronicmail,orothercomparableonlinesystem.Payment may or thepriceandtermsofsalearenegotiatedoveranInternet,mobiledevice(M-commerce),extranet, 2 TheU.S.CensusBureaudefinese-commerceas“salesofgoodsandserviceswherethebuyerplacesan order, 1 DigitalCommerce360, “USEcommerceSales,” 2020. Chapter 1 25 LisaNisenson,“PrimedforDeliveries,” Planning,April2020. September 16, 2020. 24 SpencerSoper, “Amazon PlanstoPut1,000 Warehouses inSuburbanNeighborhoods,” Bloomberg, ubs-estimates-as-online-sales-grow.html. Amazon Grow,” CNBC.com,April9, 2019, https://www.cnbc.com/2019/04/09/75000-more-stores-need-to-close- 23 LaurenThomas,“75,000 MoreStoresNeedtoCloseAcrosstheUS,UBSEstimates,asOnlineSalesand 22 DerekThompson,“ThePandemicWillChangeAmericanRetailForever,” TheAtlantic, April27, 2020. source=outbound_pub_49&utm_campaign=outbound_issue_41612&utm_content=story&utm_medium=email bisnow.com/national/news/retail/a-quarter-or-more-of-mall-space-will-disappear-permanently-105778?utm_ 21 DeesStribling,“At LeastaQuarterofU.S.MallswillDisappear,” Bisnow.com, August 30, 2020, https://www. https://www.theatlantic.com/ideas/archive/2020/04/how-pandemic-will-change-face-retail/610738/ 20 DerekThompson,“ThePandemicWillChangeAmericanRetailForever,” TheAtlantic, April27, 2020, include roadway, rail,air, andwater. Thisreportfocusesontheroadway network. 19 Thee-commercelandscapeiscomprisedofacomplexnetworkmultipletransportationmodesthat an-industrial-boomtown-build-a-runway-and-wait-103309 Logistics Hubs,” Bisnow.com, March9, 2020, https://www.bisnow.com/national/news/industrial/want-to-build- 18 CameronSperance,“ShippingGiantsAreFuriouslyBuildingWarehouses AroundaHandfulofInland 17 DeloitteRealEstate,“TheShedoftheFuture.E-commerce:ItsImpactonWarehouses,” 2014. . . ; TheWall Street . . 47 Impacts of E-Commerce in Massachusetts 48 Impacts of E-Commerce in Massachusetts commerce-on-urban-real-estate-markets.shtml. Area Development,Q42018, https://www.areadevelopment.com/logisticsInfrastructure/Q4-2018/impact-of-e- 7 JoeMikes,“TheSurprising ImpactofE-CommerceonUrbanRealEstateMarkets, AreaDevelopment,” 2018, https://www.buzzfeednews.com/article/nicolenguyen/environmental-impact-of-amazon-prime. 6 NicoleNgyuen,“TheHiddenEnvironmental CostofAmazonPrime’s Free,FastShipping.” Buzzfeed,July21, California, Davis InstituteforTransportation Studies,March2020. Impacts ofResidentialDeliveries,andEvaluateSustainable Last-MileStrategies,” Miguel Jaller, Universityof 5 MiguelJallerandAnmoPahwa, “Analytical ModelingFrameworktoAssess theEconomicandEnvironmental York Times,October27,2019, https://www.nytimes.com/2019/10/27/nyregion/nyc-amazon-delivery.html. 4 MatthewHaagandWinnieHu,“1.5MillionPackages aDay: TheInternetBringsChaostoN.Y. Streets,” New . fhwa.dot.gov/policyinformation/statistics.cfm 3 U.S.DepartmentofTransportation, DOT Table VM-2, 2010and2019, Highway StatisticsSeries,https://www. 2018. Facilities,” presentationatNPC188263, EffectsofeCommerceonLandUse,NationalPlanningConference 2 IsabelCañete-Medina,AICP, Cañete-MedinaConsultingGroup,Inc,“EvolvingTrends ineCommerce ecommerce-logistics/. “Ecommerce Logistics:FromYour SitetoTheirDoorstep,” March30, 2020, https://www.shipbob.com/blog/ CSCMP/Career/CSCMP/Develop/Starting_Your_Career/Starting_Your_SCM_Career.aspx; KristinaLopienski, 1 CouncilofSupplyChainManagementProfessionals,“WhatisaChain?” Chapter 2 fulfilled-the-changing-local-geography-of-e-commerce/. eCommerce,” Brookings,September11,2018, https://www.brookings.edu/research/where-will-online-orders-get- 15 AdieTomer andJosephKane,“WhereWillOnlineOrdersGetFulfilled?TheChangingLocalGeography of businessoffashion.com/opinions/retail/op-ed-the-shifting-gender-split-of-retail-workers. 14 BusinessofFashion,“Op-Ed|TheShifting GenderSplitofRetailWorkers,” April19, 2017, https://www. transportation. Seehttps://www.bls.gov/iag/home.htm . and storageforgoods,scenicsightseeingtransportation,supportactivitiesrelatedtomodesof transportation andwarehousingasindustriesprovidingofpassengerscargo, delivery sales,door-to-doorpartyplanelectronicshopping,andsalesthroughportablestalls; predominating; non-storeretailestablishmentsincludemail-orderhouses,vendingmachineoperators,home of newmerchandise,suchasapparel,jewelry, homefurnishings,andtoys,withnoonemerchandiseline store retail);departmentretailasestablishmentsthathave separatedepartmentsforgenerallines services incidentaltothesaleofmerchandise(includingsubsectorsdepartmentstoreretailandnon- establishments engagedinretailingmerchandise,generallywithouttransformation,andrendering 13 TheBureauofLaborStatisticsNorthAmericanIndustryClassificationSystemdefinesretailas Transportation Institute,January2017. 12 SarahOvermeyer, “HowWillMillennialsImpactFreightFlowsinTexas?” PRC16-63F,Texas A&M ParisandNYC, QuantitativeSurvey,”Practices: CrossingViewsfrom November2018. 11 6t-bureauderechercheandN.Y.U. RudinCenterforTransportation, “OnlineConsumptionandMobility 10 LisaNisenson,“PrimedforDeliveries,” Planning,April2020. amazon-is-getting-closer-your-door/. Boston Globe,December5, 2020, https://www.bostonglobe.com/2020/12/05/business/deliver-more-goods-faster- 9 TimLoganandJanelleNanos,“To DeliverMoreGoodsFaster, AmazonisGettingClosertoYour Door,” https://cscmp.org/ package-delivery-1508261759 Journal, October 17, 2017, https://www.wsj.com/articles/amazon-and-big-apartment-landlords-strike-deals-on- 27 LauraKusisto,“Amazon andBigApartmentLandlords StrikeDealsonPackageDelivery,” Wall Street Washington, October 2018. Municipal Tower,” UrbanFreightLab,SupplyChainTransportation andLogisticsCenter, Universityof 26 “TheFinal50FeetUrban GoodsDeliverySystem:CommonCarrierLockerPilot Test attheSeattle 25 AndrewClark,BostonMPO,“TheFutureoftheCurb,” Technical Memorandum, December5, 2019. 24 BonnieFan,“RecommendationstoImproveUrban Freight,” CityofBoston,August 2, 2019. 23 InstituteofTransportation Engineers,“CurbsideManagementPractitionersGuide.” November 2017, https://nacto.org/tsdg/curb-appeal-whitepaper/. Leadership, “CurbAppeal:CurbsideManagementStrategies forImprovingTransit Reliability,” NACTO, 22 InstituteofTransportation Engineers,“CurbsideManagementPractitionersGuide,” andNACTO Transit https://www.bloomberg.com/news/articles/2017-04-20/how-cities-are-coping-with-the-delivery-truck-boom. 21 AndrewZaleski,“CitiesSeekDeliveranceFromthe E-CommerceBoom,” BloombergCityLab,April20, 2017, Smart%20Cities%20Dive%20Newsletter%20%5Bissue:29723%5D&utm_term=Smart%20Cities%20Dive city-revenues/585349/?utm_source=Sailthru&utm_medium=email&utm_campaign=Issue:%202020-09-17%20 September 17, 2020, https://www.smartcitiesdive.com/news/delivery-vehicles-are-a-necessary-target-to-patch- 20 AryanDevani,“DeliveryVehicles areaNecessaryTarget toPatchCityRevenues,” SmartCitiesDive, restaurant-delivery-fees-budget-20201123-xxrmoqtiujgh5oiycnlwhtk74u-story.html. November 23, 2020, https://www.chicagotribune.com/coronavirus/ct-coronavirus-chicago-lori-lightfoot- 19 JohnByrne,“Grounddeliverytaxwouldtack$1.25ontoAmazonordersinChicago,” ChicagoTribune, help-fund-mta/2767045/. 8, 2020, https://www.nbcnewyork.com/news/local/new-yorkers-may-have-to-pay-package-delivery-surcharge-to- 18 NBCNewYork, “NewYorkers May Have toPay PackageDeliverySurchargetoHelpFundMTA”, December Street Journal,May 28, 2020. 17 PaulZiobro,“UPSAddsPeakDeliverySurchargetoManageE-CommerceDemandAmidCoronavirus,” Wall 16 World EconomicForum,“TheFutureofthe Last-MileEcosystem,” January2020. . ucdavis.edu/blog-post/keeping-e-commerce-environmentally-friendly-what-consumers-can-do/ Consumers CanDo,” BlogpostonU.C.Davis Institute ofTransportation Studies,December1,2020, https://its. 15 MiguelJaller, AnmolPahwa, SethKarten,“Keeping e-CommerceEnvironmentally Friendly—What Research Report924,2019. Technologies onLandUseandTransportation.” Washington, D.C.:TheNationalAcademiesPress,NCHRP 14 NationalAcademiesof Sciences,Engineering,andMedicine,“ForeseeingtheImpactofTransformational 13 Ibid. news/e-commerce/2020/the-race-for-online-grocery-shopping-heats-up/. 12 “TheRaceforOnlineGroceryShoppingHeatsUp,” Pymnts.com,August 21,2020, https://www.pymnts.com/ Transportation Institute,January2017. 11 SarahOvermeyer, “HowWillMillennialsImpactFreightFlowsinTexas?” PRC16-63F,Texas A&M ParisandNYC, QuantitativeSurvey,”Practices: CrossingViewsfrom November2018. 10 6t-bureauderechercheandN.Y.U. RudinCenterforTransportation, “OnlineConsumptionandMobility Research Institute,February2019. 9 Alan HooperandDanMurray, “E-commerceImpactsontheTrucking Industry,” AmericanTransportation October 2018. Tower,” UrbanFreightLab,SupplyChainTransportation andLogisticsCenter, UniversityofWashington, 8 “TheFinal50FeetUrbanGoodsDeliverySystem:CommonCarrierLockerPilotTest attheSeattleMunicipal . . 49 Impacts of E-Commerce in Massachusetts 50 Impacts of E-Commerce in Massachusetts enotrans.org/event/webinar-how-automated-delivery-could-shape-the-future-of-local-commerce/ Delivery CouldShapetheFuture ofLocalCommerce,” ENOWebinar, September10, 2020, https://www. 44 MatthewLipka,Nuro,Alia Verloes, Steer, PaulLewis, EnoCenterforTransportation, “HowAutomated January 18, 2018, https://www.theverge.com/2018/1/8/16863092/toyota-e-palette-self-driving-car-ev-ces-2018 43 AndrewJ.Hawkins, “Toyota’s ‘e-Palette’isaWeird, Self-DrivingModularStoreonWheels,” TheVerge, louisiana-arkansas-autonomous-vehicle-2020-12 State ofArkansas,” BusinessInsider, December15, 2020, https://www.businessinsider.com/walmart-gatik- “Walmart LookstoExpanditsFuturisticDeliveryCapabilitieswithaNewDriverlessTruck Trial initsHome 2020, https://www.engadget.com/walmart-cruise-self-driving-delivery-ev-pilot-2021-162209048.html; AineCain, 42 J.Fingas,“Walmart willTest Self-DrivingDeliveryServiceswithElectric Cars,” Engadget,November10, pilot/#526c9c0e5aa5 ups-jumps-into-the-future-with-plan-to-buy-10000-electric-vans-and-a-waymo-self-driving-delivery- Driving DeliveryPilot,” Forbes,January29, 2020, https://www.forbes.com/sites/alanohnsman/2020/01/29/ 41 Alan Ohnsman,“UPSJumpsintoTheFutureWithPlan To Buy10,000 ElectricVans AndAWaymo Self- 40 StarshipTechnologies Website, https://www.starship.xyz/company/. June 17, 2020. 39 Alex FrederickandAsadHussain,“DeliveryTechnologies AreReshapingtheGroceryIndustry,” PitchBook, 10, 2020, https://www.supplychaindive.com/news/walmart-grocery-drone-pilot-flytrex-delivery-faa/584965/ 38 MattLeonard,“Walmart PilotsDroneDeliveryforGrocerieswithFlytrex,” SupplyChainDive,September us. 2020, https://www.auvsi.org/industry-news/walmart-zipline-partner-launch-first-its-kind-drone-delivery-service- 37 “Walmart, Ziplinepartnertolaunch'first-of-its-kind' dronedeliveryserviceinU.S.,” AUVSI, September 14, boston.gov/news/city-releases-rfi-electric-cargo-bikes-delivery-solution 36 CityofBoston,“CityreleasesRFIforelectriccargobikesasadeliverysolution,” July20, 2020, http://www. newsletter&utm_medium=email&silverid=%25%25RECIPIENT_ID%25%25&utm_source=newsletter www.fastcompany.com/90442742/one-day-deliveries-are-breaking-our-cities?utm_campaign=citylab-daily- 35 JasperDekker, “One-Day DeliveriesareBreaking OurCities,” FastCompany, December23, 2019, https:// delivery-seattle-returning-bicycle-courier-origins-century-later/ a CenturyLater,” GeekWire,October, 25, 2018, https://www.geekwire.com/2018/ups-launches-cargo-e-bike- 34 MonicaNickelsburg,“UPSLaunchesCargoE-bikeDeliveryinSeattle,ReturningtoBicycleCourierOrigins mayor-de-blasio-commercial-cargo-bike-program-reduce-delivery-congestion. City DepartmentofTransportation, December4,2019, https://www1.nyc.gov/office-of-the-mayor/news/594-19/ 33 “Mayor deBlasioAnnouncesCommercialCargoBikeProgramtoReduceDeliveryCongestion,” NewYork 2020, https://www.smartcitiesdive.com/news/miami-e-cargo-bike-pilot-dhl-city-congestion-pollution/578115/ 32 CailinCrowe,“MiamiPilotsE-cargoBikestoReduceCongestion,Pollution,” SmartCitiesDive,May 18, Square-Civic-Association-Recap. Square CivicAssociation,May 20, 2020, https://onthedotboston.com/Core-Investments-Presentation-Andrew- 31 CoreInvestments andOntheDOT “LastMile”Warehouse/Distribution ProjectPresentationtoAndrew 30 AmazonLogisticsSummaryofOperations–480SpragueStreet,Dedham,MA(SiteDB02). Somerville, SouthEaston,Sudbury, Waltham, andWilmington. Marlborough, Natick,Newton,Northborough,Norwood,Peabody, Plymouth,Quincy, Saugus,Sharon, 29 Acton,Bedford,Boston,Burlington,Cambridge,Cohasset,Dedham,Framingham,Hingham,Lexington, 28 AsofJanuary2020...... 11 Compiledfrom: 10 DeloitteRealEstate,“TheShedoftheFuture.E-commerce:ItsImpactonWarehouses,” 2014. 9 MWPVL,December2020, https://www.mwpvl.com/html/amazon_com.html. facilities-105943 14, 2020, https://www.bisnow.com/national/news/industrial/amazon-on-hiring-binge-opening-hundreds-of- 8 DeesStribling,“Amazon OpeningHundredsofFacilitiesDuringitsHiringBinge,” Bisnow.com, September fulfilled-the-changing-local-geography-of-e-commerce/. eCommerce,” Brookings,September11,2018, https://www.brookings.edu/research/where-will-online-orders-get- 7 AdieTomer andJosephKane,“WhereWillOnlineOrdersGetFulfilled?TheChangingLocalGeography of Negative Impacts,” JournaloftheAmericanPlanningAssociation,Vol. 85, No.4,2019. 6 QuanYuan, “PlanningMatters:InstitutionalPerspectivesonWarehousing DevelopmentandMitigatingIts Management Council(IAMC)andtheSocietyofIndustrialOfficeRealtors(SIOR),” March2018. 5 “RoadmapforChange:TheFlexibleIndustrialDistributionFacilitiesNetworktheFuture,Asset an-industrial-boomtown-build-a-runway-and-wait-103309 Logistics Hubs,” Bisnow.com, March9, 2020, https://www.bisnow.com/national/news/industrial/want-to-build- 4 CameronSperance,“ShippingGiantsAreFuriouslyBuildingWarehouses AroundaHandfulofInland usage-supply-outstrips-demand-102687 Bisnow, January27, 2020, https://www.bisnow.com/national/news/industrial/grocery-ecommerce-warehouse- 3 MatthewRothstein,“GroceryGainsOnE-CommerceInWarehouse MarketAsSupplyOutstripsDemand,” https://www.statista.com/statistics/546894/number-of-amazon-prime-paying-members/. 2 Statista,“NumberofAmazonPrimeMembersintheUnitedStatesasDecember2019,” March10, 2020, 1 DeloitteRealEstate,“TheShedoftheFuture.E-commerce:ItsImpactonWarehouses,” 2014. Chapter 3 • • • • • • • • • • • • 2021. Doug Banks,“Amazon OpensDeliveryStation;Signs NewLeases,” BostonBusiness Journal,February15, 2020. Greg Ryan,“Amazon Given$27MTax BreakforNorthAndover Site,” Boston BusinessJournal,June25, June 30, 2020. Susanna Sudborough,“Amazon OpeningNewDeliveryStationsinTaunton, Middleboro,” TheEnterprise, August 27, 2020. J.D. O’Gara,“HollistonandMedway ResidentsConcernedOverHopping BrookProposal,” HollistonNews, October 7, 2020. Gintautas Dumcius,“Amazon EyesSecondDistributionFacilityinRevere,” BostonBusinessJournal, November 5, 2020. Grant Welker, “Amazon EstablishingMajorNewMilford Warehouse,” Worcester BusinessJournal, November 30, 2020. Grant Welker, “GreendaleMall-to-Amazon Would beaFirstforNewEngland,” Worcester BusinessJournal, December 2, 2020. Cliff Clark,“Fitchburgis Working toLandAmazonDistributionFacility,” SentinelandEnterprise, Boston Globe,December5, 2020. Tim LoganandJanelleNanos,“To DeliverMoreGoodsFaster, AmazonisGettingClosertoYour Door,” December 5, 2020. Mark Conti,“Amazon PlansSecondLastMileDeliveryCenterinWorcester,” Telegram andGazette, Eagle Tribune, January22, 2021. Allison Corneau,“Amazon toOpenDistributionCenterHubatFormerHaverhill Southwick FactorySite,” MWPVL https://www.mwpvl.com/html/amazon_com.html, asofDecember2020. . . . 51 Impacts of E-Commerce in Massachusetts 52 Impacts of E-Commerce in Massachusetts employment is neededtounderstandthese trends,andtheirimpacts onemploymentandtax revenues. as e-commercesaleshave increased.Moreresearchonshifts instatewideretailsalesand statewide retail 31 AsnotedinChapter1,Massachusetts retailemploymenthasbeenrelatively flatoverthelast10years and ConsumerServices,Volume 54,May 2020. ‘Retail Apocalypse’:AFramework ofConsumerEvaluationstheNewRetailLandscape,” JournalofRetailing Just Beginning”, Bloomberg,November8, 2017; SabrinaHelm,SooHyunKim, SilviaVan Riper, “Navigating the 30 MattTownsend, Jenny Surane,EmmaOrrandChristopherCannon,“America’s ‘RetailApocalypse’isReally 29 DerekThompson,“ThePandemicWillChangeAmerican RetailForever,” TheAtlantic, April27, 2020. source=outbound_pub_49&utm_campaign=outbound_issue_41612&utm_content=story&utm_medium=email bisnow.com/national/news/retail/a-quarter-or-more-of-mall-space-will-disappear-permanently-105778?utm_ 28 DeesStribling,“At LeastaQuarterofU.S.Malls willDisappear,” Bisnow.com, August 30, 2020, https://www. https://www.theatlantic.com/ideas/archive/2020/04/how-pandemic-will-change-face-retail/610738/ 27 DerekThompson,“ThePandemicWillChangeAmerican RetailForever,” TheAtlantic, April27, 2020, https://www.ft.com/content/d34ad3a6-5fd3-11e7-91a7-502f7ee26895?mhq5j=e3 26 RobinWigglesworth,“WilltheDeathofU.S.RetailbeNextBigShort?,” FinancialTimes,July16, 2017, July 2020. 25 BLCompanies,“Traffic Study-ProposedDeliveryStationImprovements,480SpragueStreet,Dedham,MA,” September 16, 2020. 24 SpencerSoper, “Amazon PlanstoPut1,000 Warehouses inSuburbanNeighborhoods,” Bloomberg, Memorandum” February2020. 23 HowardSteinHudson,“‘Tripod’ DistributionCenter, SouthBoston–Transportation ImpactTechnical Square-Civic-Association-Recap. Square CivicAssociation,May 20, 2020, https://onthedotboston.com/Core-Investments-Presentation-Andrew- 22 CoreInvestments andOntheDOT “LastMile”Warehouse/Distribution ProjectPresentationtoAndrew July 2020. 21 BLCompanies,“Traffic Study-ProposedDeliveryStationImprovements,480SpragueStreet,Dedham,MA,” warehouses-in-neighborhoods. September 16, 2020, https://www.bloomberg.com/news/articles/2020-09-16/amazon-plans-to-put-1-000- 20 SpencerSoper, “Amazon PlanstoPut1,000 Warehouses inSuburbanNeighborhoods,” Bloomberg, and doesnotincludeCapeCod. 19 MAPC’sCoStarsubscriptioncoverageisfortheeasternpartofstateextendingtoQuabbinReservoir 18 ColliersInternational,“GreaterBoston–IndustrialViewpoint,Q12020.” Counties. 17 ColliersdefinesthegreaterBostonmarketascomprisingEssex,Middlesex,Norfolk,Plymouth,Suffolk 16 ColliersInternational,“GreaterBostonIndustrialViewpoint,Q42020.” 16, 2020. 15 DionSorrentino,“NewIndustrialRevolution–Disruption2020, Vol. 1.,No.14,” ColliersInternational,June 14 ColliersInternational, “Greater Boston–IndustrialViewpoint,Q42019.” bostons-tight-industrial-market-106954. Boston, December3, 2020, https://www.bisnow.com/boston/news/industrial/tenants-set-new-standards-in- 13 AndrewMartinez,“'Land-Starved'BostonSetsNewPricingHighsInTightIndustrialMarket,” Bisnow expands-with-eight-mass-delive.html. Boston BusinessJournal,June30, 2020, https://www.bizjournals.com/boston/news/2020/06/30/amazon-logistics- 12 LuciaMaffeiandCatherineCarlock, “Amazon LogisticsExpandswithEightNewMass.DeliveryStations,” . . . sterling-douglass/. Spoon, January 21,2019, https://thespoon.tech/a-rough-guide-to-ghost-kitchens-according-to-chowly-ceo- 49 JeniferMartson,“A RoughGuidetoGhostKitchens, AccordingtoChowlyCEOSterlingDouglass,” The https://www.bisnow.com/los-angeles/news/retail/ghost-kitchens-thriving-during-coronavirus-pandemic-103820 48 JosephPimentel,“Ghost KitchensAimtoCapitalizeDuringCoronavirus Pandemic,” Bisnow, April14, 2020, 47 “GroceryFulfillmentand DarkStores,” InVisibleCapital with PitchBook,Podcast,December1,2020. and-At-Least-50-Additional-Pickup-Locations-by-Year-End.html. release/2020/07/01/2056260/0/en/Stop-Shop-to-Accelerate-Omnichannel-Growth-With-Three-New-Warerooms- Pickup LocationsbyYear-End,” Stop&ShopPressRelease,July 1,2020, https://www.globenewswire.com/news- 46 “Stop&ShoptoAccelerateOmnichannelGrowth withThreeNewWarerooms andatLeast50Additional 45 “GroceryFulfillmentandDarkStores,” InVisibleCapitalwithPitchBook,Podcast,December1,2020. June 17, 2020. 44 Alex FrederickandAsadHussain,“DeliveryTechnologies AreReshapingtheGroceryIndustry,” PitchBook, brickmeetsclick.com/nov-2020-online-grocery-scorecard--customer---sales-mix-shift-toward-delivery---pickup. 43 BrickMeetsClick,“November2020Scorecard–OnlineGroceryDeliveryandPickup,” https://www. www.businessofapps.com/data/food-delivery-app-market/#1.1. delivery/united-states; andBusinessofApps,“FoodDeliveryAppRevenueUsageStatistics(2021),” https:// 42 Statista,“OnlineFoodDelivery,” (2021),https://www.statista.com/outlook/dmo/eservices/online-food- restaurant. Doesnotincludedeliveriesofnon-processedornon-preparedfood(e.g.,HelloFresh). and deliverybothcarriedoutbyaplatform(e.g.,Deliveroo),3)onlineordersthatarepickedupinthe ordered viaaplatform(e.g.,DeliveryHero)orrestaurantwebsiteDomino’s),2)onlinemealorder 41 Includesmealsorderedonlinewhichare:1)directlydeliveredbytherestaurant,regardlessiftheyare 2020. 40 GregRyan,“Amazon Given$27MTax BreakforNorthAndoverSite,” BostonBusinessJournal,June25, d0aa2bc8-62ff-5ba1-a78b-047b17e82720.html. www.eagletribune.com/news/merrimack_valley/special-town-meeting-supports-amazon-project/article_ 39 PaulTennant, “SpecialTown MeetingSupportsAmazonProject,” TheEagleTribune, June19, 2019, https:// growth/. www.epi.org/publication/unfulfilled-promises-amazon-warehouses-do-not-generate-broad-based-employment- 38 JanelleJonesandBenZipperer, “UnfulfilledPromises,” EconomicPolicyInstitute,February2018, https:// massachusetts-malls-could-be-transformed-as-part-of-deal-with-amazon.html with Amazon,” MassLive,August 15, 2020, https://www.masslive.com/business/2020/08/more-than-a-dozen- 37 CatherineCarlock,“MoreThanaDozenMassachusettsMallsCouldbeTransformed asPartofDeal mall-operator-look-at-turning-sears-j-c-penney-stores-into-fulfillment-centers-11596992863 Into FulfillmentCenters,” Wall StreetJournal, August 9, 2020, https://www.wsj.com/articles/amazon-and-giant- 36 EstherFungandSebastianFerrera,“Amazon andMallOperatorLookatTurning Sears,J.C.PenneyStores Peabody (NorthshoreMall),Saugus(SquareOneandWrentham (Wrentham VillagePremium Outlets). Marlborough (SolomonPondMall),Newton(TheShopsatChestnutHill),NorthAttleboro (EmeraldSquare), Danvers (LibertyTree MallandLibertyTree Strip),Hyannis(CapeCodMall),Lee(LeePremiumOutlets), 35 Auburn (Auburn Mall),Boston(CopleyPlace),Braintree(SouthShorePlaza),Burlington(Burlington Predicts,” CNBC,October15, 2020, https://www.cnbc.com/2020/10/15/mall-values-could-b.html. 34 LaurenThomas,“Turning aDeadMallintoWarehouse willSlashitsValue asMuch90percent,Barclays Issues/June-2020/A-Turning-Point-for-Malls.aspx. 33 JoshStevens,“A Turning PointforMalls,” InTransition Magazine,June2020, https://intransitionmag.org/ September 16, 2020. 32 SpencerSoper, “Amazon PlanstoPut1,000 Warehouses inSuburbanNeighborhoods,” Bloomberg, . . . 53 Impacts of E-Commerce in Massachusetts 54 Impacts of E-Commerce in Massachusetts Analytics, June 17, 2020. 11 Dr. Victor Canalog,ThomasP. LaSalviaPhD,“Why Industrial(Warehouse) isLikelytoFareBetter,” Moody’s new-streamlined-packaging-is-jamming-up-recycling-centers/. Washington Post,February 11,2019, https://www.washingtonpost.com/technology/2019/02/11/why-amazons- 10 KristenMillaresYoung, “Why Amazon’s NewStreamlinedPackagingisJammingUp RecyclingCenters,” mayor-de-blasio-commercial-cargo-bike-program-reduce-delivery-congestion. City DepartmentofTransportation, December4,2019, https://www1.nyc.gov/office-of-the-mayor/news/594-19/ 9 “Mayor deBlasioAnnouncesCommercial CargoBikeProgramtoReduceDeliveryCongestion,” NewYork December 5, 2019, https://www.smartcitiesdive.com/news/amazon-dhl-ups-cargo-bikes-new-york-city/568553/ 8 MattLeonard,“NYC LaunchesCommercialCargoBikePilot to ReduceCongestion,” SmartCitiesDive, html. solutions/ups-invests-in-arrival-accelerates-fleet-electrification-with-order-of-10-000-electric-delivery-vehicles. Press Release,January29, 2020, https://stories.ups.com/upsstories/us/en/newsroom/press-releases/sustainable- 7 “UPSInvests inArrival,AcceleratesFleetElectrification withOrderof10,000 ElectricDelivery Vehicles,” UPS emissions-by-2040 September 21,2020, https://www.tucsonpost.com/news/266462735/us-retail-giant-walmart-aims-for-zero-global- 6 Voice ofAmerica,“USRetailGiantWalmart AimsforZeroGlobalEmissionsby2040,” Tucson Post, emissions-jeff-bezos. 2020, https://www.theverge.com/2020/6/23/21300427/amazon-climate-change-commitments-greenhouse-gas- 5 JustineCalma,“Amazon BoostsClimateCommitmentsandGreenhouseGasEmissions,” TheVerge, June23, 2020, https://www.theverge.com/2020/10/8/21507495/amazon-electric-delivery-van-rivian-date-specs. 4 AndrewJ.Hawkins, “Amazon Unveils itsNewElectricDeliveryVans BuiltbyRivian,” TheVerge, October8, 2020, https://www.autonews.com/manufacturing/e-commerce-surge-spurs-race-electric-delivery-vehicles 3 NickCarey, “E-commerceSurgeSpursRaceforElectric DeliveryVehicles,” Automotive News,September9, Webinar -NPC20@Home,APA April30, 2020, https://www.planning.org/events/activity/9199186/ . 2 JasonStudy, RichardStein,LisaNieenson,“Live-Work-Play-Dispatch: DesigningforE-Commerce,” APA Learn Region,” April2018. 1 SouthernCaliforniaAssociationofRegionalGovernments,“FinalIndustrialWarehousing intheSCAG Chapter 5 www.restaurantbusinessonline.com/operations/4-trends-defining-delivery-during-covid-19 5 JoeGuskowski,“4Trends DefiningDeliveryDuringCOVID-19” RestaurantBusiness, August 4,2020, https:// growth-looks-strong-covid-19-recession-looms-ahead. Supermarket News,October16, 2020, https://www.supermarketnews.com/online-retail/retention-online- 4 MichaelBrowne,“RetentionofOnlineGrowthLooksStrong,butaCOVID-19 RecessionLoomsAhead.” altered-retail.html. Landscape,” CNBC,September29, 2020, https://www.cnbc.com/2020/09/29/how-coronavirus-pandemic-forever- 3 MelissaRepkoandLaurenThomas,“6Ways theCoronavirus PandemichasForeverAltered theRetail malls. https://www.bloomberg.com/news/articles/2020-06-09/as-many-as-25-000-u-s-stores-may-close-in-2020-mostly-in- 2 KimBehasin,“As Many as25,000 U.S.StoresMay Closein2020, MostlyinMalls,” Blomberg,June9, 2020, . america-revenue-surges-43-as-web-grocery-sales-triple/ DigitalCommerce360.com, July30, 2020, https://www.digitalcommerce360.com/2020/07/30/amazons-q2-north- 1 DonDavis, “Amazon’s Q2NorthAmericanRevenuesSurges43percentasWeb GrocerySalesTriple,” Chapter 4 . . . . Negative Impacts,” JournaloftheAmericanPlanning Association,Vol. 85, No.4,2019. 4 QuanYuan, “PlanningMatters:InstitutionalPerspectives onWarehousing DevelopmentandMitigatingIts 3 InstituteofTransportation Engineers,Trip GenerationManual,Vol. 1:DeskReference,p2. 2 InstituteofTransportation Engineers,Trip GenerationManual,10thEdition,Washington, DC;2017. May 6, 2020(Hingham). Distribution FacilityonWest Street–Traffic ImpactStudy, CALYX Engineers&Consultants,anNV5Company, Vanasse &AssociatesSupplementalTraffic EngineeringPeerReview, June24,2020, Hingham; Warehouse/ Ordinance inordertograntSitePlanApproval.SeeBoardDecision–Approval,November5, 2015; 1 TheCityofEverett’sPlanningBoardusedthesecriteriaasspecifiedinSection19theEverettZoning Appendix November 2017, https://nacto.org/tsdg/curb-appeal-whitepaper/. 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Chapter 6 POt25dZIWoaph01gNKkJoN/amp.html. 6, 2018, https://www.bostonglobe.com/ideas/2018/12/06/how-amazon-prime-will-change-way-our-cities-look/ 15 CourtneyHumphries,“HowAmazonPrimewillChangetheWay OurCitiesLook,” BostonGlobe,December 2020. 14 AdamBagni,“Cambridge RestaurantOwnerFedUpwithHighDeliveryServiceFees,” WCVB-5, May 11, pandemic,” HouseBill4767, https://malegislature.gov/Bills/191/H4767 13 “An theCOVID-19 Actaddressingchallengesfacedbyfoodandbeverageestablishmentsresultingfrom service-fees/32441552#. 2020, https://www.wcvb.com/article/cambridge-massachusetts-restaurant-owner-fed-up-with-high-delivery- 12 AdamBagni,“CambridgeRestaurantOwnerFedUpwithHighDeliveryServiceFees,” WCVB-5, May 11, . 55 Impacts of E-Commerce in Massachusetts