According to a new report from CBRE - mega warehouses are in style - in a big way in 2022. Warehouse users signed leases for 37 facilities of 1 million sq. ft. or larger in the U.S. in the first half of this year, up from 24 in the first half of 2021.
This was a key finding in CBRE's analysis of the 100 largest industrial & logistics leases cinched in this year's first half. Overall, the average size of the 100 largest leases edged close to seven digits -- 931,860 sq. ft., up from 800,149 a year ago.
The activity points to expansion in the industry, particularly for traditional retailers and wholesalers. Eighty-five of the top 100 leases are new leases rather than renewals. Traditional retailers and wholesalers accounted for the largest share - 40 leases. Runner up: Third-party logistics firms at 30 leases.
"The industrial & logistics market performed solidly in the first half of the year despite headwinds challenging the broader economy," said John Morris, CBRE's President of Industrial & Logistics in the Americas. "We have seen a falloff in leasing by smaller users - those in 25,000 sq. ft. of less - likely due to the economic environment. But the largest users are forging ahead, picking up most of the slack."
The markets in which the largest 100 leases occurred are a mix of industrial & logistics mainstays like Atlanta, Chicago and California's Inland Empire, and a few that don't always see a very large volume of activity, such as Indianapolis, Savannah, Ga., and California's Central Valley.
Leading Markets For Top-100 Industrial Leases in First Half 2022