2022 Sets Record for Million-Sq.-Ft.-Plus Industrial Leases

Demand for industrial & logistics warehousing space is driving an increase in megawarehouses, according to a new CBRE report. The largest 100 industrial lease transactions in 2022 included an unprecedented 63 signings for 1 million sq. ft. or more, up from 57 in 2021.

This was a key finding in CBRE’s analysis of the 100 largest industrial & logistics leases completed last year. Overall, the average size of the 100 top leases was 1.07 million sq. ft., compared to 2021’s previous record of 1.05 million sq. ft.

Accounting for 53 of the top 100, traditional retailers/wholesalers expanded their footprints to accommodate e-commerce sales growth and to hold more inventory to guard against supply chain disruptions. Third-party logistics (3PL) operators took second place, signing 18 of the top leases, up from 10 in 2021. E-commerce companies followed closely behind with 14 of the top 100, down from 21 in 2021.

“Despite an expected recession, the leasing of megafacilities is expected to remain solid this year as many occupiers continue to build out their e-commerce operations and sustain their inventory levels,” said John Morris, president of Americas Industrial & Logistics for CBRE. “Strong demand for megawarehousing centers is expected to continue in 2023 and a large number of construction completions will provide more opportunities for expansion.”

Top markets for these leases included traditional mainstays like the Inland Empire, Chicago and Atlanta, as well as growing markets such as Dallas-Fort Worth, Phoenix and Columbus.

Top 10 Leading Markets for Top 100 Lease Transactions in 2022

To read the full report, please click here.