Demand for ecommerce distribution space was the impetus for many of the largest industrial and logistics leases completed in the United States in the first half of this year, highlighting users’ preference for large, modern facilities, CBRE reports.
The company’s analysis of the 100 largest leases for industrial and logistics space by square footage found that 56 were signed by ecommerce companies and third-party-logistics companies that handle distribution for goods purchased online.
The balance of the first half’s largest leases were signed by manufacturers (14 leases), food and beverage providers (11), retailers (7), technology companies (4) and an “other” catch-all category (8).
CBRE found that 30 of the leases were for warehouses larger than 750,000 sq. ft., reflecting ecommerce users’ preference for expansive facilities with high ceiling heights and, in many cases, modern specifications for automation and rapid movement of massive inventories.
In all, the 100 largest leases span 67.8 million sq. ft., the industrial real estate company notes.
“The supply chain arms race is as competitive as it’s ever been. While ecommerce is driving many new leases, there still is a solid diversity of users throughout the top 100 leases,” says Adam Mullen, CBRE Americas Leader of Industrial & Logistics.
“That’s good for the warehouse and distribution industry overall,” he adds. “And the strength of leasing to 3PLs shows that companies are striving to create the most flexible and nimble distribution networks possible.”
California’s Inland Empire led U.S. metro areas in share of the largest industrial and logistics leases during the first half of the year, with 14 transactions spanning 11.6 million sq. ft.
Other hot markets for big leases included Atlanta (10 deals for 7 million sq. ft.), Chicago (11 deals for 6.8 million sq. ft.), Pennsylvania’s I-78/I-81 corridor (10 deals for 6.8 million sq. ft.) and Dallas-Fort Worth (eight deals for 5.2 million sq. ft.)
