Biggest Gains Seen In Metros Including Atlanta, Inland Empire, Cincinnati
E-commerce has driven a more than doubling of the average footprint of warehouses built in the U.S. since the early 2000s, with the largest expansions coming in metro areas with the big populations that online sellers covet and the ample land that developers need, according to a new report from CBRE.
CBRE analyzed the average size of warehouses built in the U.S. during the last development upswing from 2002 to 2007 and compared those figures to the current building period of 2012-2017. The analysis found that the average size increased by 143 percent in that span to 184,693 sq. ft. and the average warehouse clear height rose by 3.7 feet, to 32.3 feet in total.
“This dramatic expansion of warehouse size and height in the U.S. is almost purely a product of e-commerce, which has created demand for massive warehouses with high ceilings to store extensive, fast-moving inventories,” said David Egan, CBRE Global Head of Industrial & Logistics Research. “This demand is a long-term factor, meaning that U.S. markets without enough modern logistics facilities will see continued construction as they catch up.”
The largest gains in average warehouse size came in markets with big, growing populations and a ready supply of developable land, led by Atlanta (284 percent gain in average size), Cincinnati (237 percent) and California’s Inland Empire (222 percent).
“Salt Lake City’s strategic access to the western United States and strong local economy have facilitated a recent increase in large industrial leases. Year-to-date, sixteen new industrial leases over 100,000 square feet have been signed—more than twice the number last year. And with a strong pipeline of large users still in the market for space, this condition is expected to continue,” noted Jeff Richards, senior vice president. “These larger spaces are frequently used as warehousing and distribution sites and are a reflection of the growing demand for e-commerce and the ever-rising influence of technology on the retail and industrial segments.”
To read the report, click here.
CBRE Group, Inc. (NYSE:CBRE), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services and investment firm (based on 2017 revenue). The company has more than 80,000 employees (excluding affiliates), and serves real estate investors and occupiers through approximately 450 offices (excluding affiliates) worldwide. CBRE offers a broad range of integrated services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services. Please visit our website at www.cbre.com.
