Demand for e-commerce distribution space was the impetus for many of the largest Industrial & Logistics leases completed in the U.S. in the first half of this year, highlighting users’ preference for large, modern facilities, according to a new report from CBRE.
CBRE’s analysis of the 100 largest leases for Industrial & Logistics (I&L) space by square footage found that 56 were signed by e-commerce companies and third-party-logistics companies (3PLs), which predominantly handle distribution for goods purchased online.
The balance of the first half’s largest I&L leases were signed by manufacturers (14 leases), food and beverage providers (11), retailers (seven), technology companies (four) and an “other” catch-all category (eight).
CBRE found that 30 of the leases were for warehouses larger than 750,000 sq. ft., reflecting e-commerce users’ preference for expansive facilities with high ceiling heights and, in many cases, modern specifications for automation and rapid movement of massive inventories. Cumulatively, the 100 largest leases span 67.8 million sq. ft.
“E-commerce companies continue to lease space along the Pennsylvania I-78/I-81industrial corridor,” said Vincent Ranalli, Senior Vice President, CBRE. “With the steady, sustained growth of e-commerce, we are also witnessing parcel delivery and last mile providers building up their networks and taking more space along the corridor. Consumers want their products delivered quickly and the I-78/I-81 corridor provides the ideal location to service the large population centers of the Northeastern United States.”
California’s Inland Empire leads all US metro areas in share of the first half’s largest I&L leases, 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.)
To read the report, click here.
CBRE’s analysis of the 100 largest leases for Industrial & Logistics (I&L) space by square footage found that 56 were signed by e-commerce companies and third-party-logistics companies (3PLs), which predominantly handle distribution for goods purchased online.
The balance of the first half’s largest I&L leases were signed by manufacturers (14 leases), food and beverage providers (11), retailers (seven), technology companies (four) and an “other” catch-all category (eight).
CBRE found that 30 of the leases were for warehouses larger than 750,000 sq. ft., reflecting e-commerce users’ preference for expansive facilities with high ceiling heights and, in many cases, modern specifications for automation and rapid movement of massive inventories. Cumulatively, the 100 largest leases span 67.8 million sq. ft.
“E-commerce companies continue to lease space along the Pennsylvania I-78/I-81industrial corridor,” said Vincent Ranalli, Senior Vice President, CBRE. “With the steady, sustained growth of e-commerce, we are also witnessing parcel delivery and last mile providers building up their networks and taking more space along the corridor. Consumers want their products delivered quickly and the I-78/I-81 corridor provides the ideal location to service the large population centers of the Northeastern United States.”
California’s Inland Empire leads all US metro areas in share of the first half’s largest I&L leases, 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.)
To read the report, click here.
About CBRE Group, Inc.
CBRE Group, Inc. (NYSE:CBRE), a Fortune 500 and S&P 500 company headquartered in Dallas is the world’s largest commercial real estate services and investment firm (based on 2019 revenue). The company has more than 100,000 employees (excluding affiliates) and serves real estate investors and occupiers through more than 530 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.
CBRE Group, Inc. (NYSE:CBRE), a Fortune 500 and S&P 500 company headquartered in Dallas is the world’s largest commercial real estate services and investment firm (based on 2019 revenue). The company has more than 100,000 employees (excluding affiliates) and serves real estate investors and occupiers through more than 530 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.
