Philadelphia Constructed the Most 1 Million-Sq.-Ft. Facilities in the Country Between 2010 and 2016
Philadelphia – February 6, 2017 – The rapid growth of e-commerce has created a big trend in U.S. industrial markets: a proliferation of warehouses spanning 1 million sq. ft. or larger.
The massive warehouses and distribution centers have sprouted from Southern California to Philadelphia, clustering around metro areas that provide the mix of road, rail and sea access that e-commerce users covet, according to a new report from CBRE Group, Inc.
All told, 117 such facilities were built across the U.S. from 2010 to 2016 for a total of 141.2 million sq. ft., which shows an increase from the 99 facilities built between 2003 and 2009, according to CBRE. The markets in which the most big-box construction occurred in the 2010-2016 timeframe are led by Philadelphia, California’s Inland Empire and Dallas/Fort Worth.
Top Markets For 1 Million-Sq.-Ft. Warehouses Built 2010-2016:
Number of Buildings
Total Sq. Ft. (millions)
Looking ahead, the busiest markets for on-going construction of 1 million-sq.-ft. warehouses are led by the Inland Empire, Chicago, Philadelphia and Atlanta. Across the 10 busiest U.S. markets for this type of construction, 29 such facilities are underway.
“The Eastern Pennsylvania market is poised to see continued demand for large 1 million-sq.-ft. warehouses along the I78/I81 corridor,” said Sean Bleiler, Senior Vice President, CBRE. “Going into 2017, tenant activity is increasing, and developers continue to build on speculation to meet quick tenant-occupancy timelines.”
While massive warehouses aren’t purely a phenomenon of e-commerce, the two are closely related. E-commerce users typically need two to three times the amount of warehouse and distribution space that traditional users do. That’s mostly because e-commerce fulfillment requires more inventory, labor and automation.
CBRE Group, Inc. (NYSE:CBG), 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 2015 revenue). The Company has more than 70,000 employees (excluding affiliates), and serves real estate investors and occupiers through more than 400 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.