It was also a big year for the big box.
According to data released Thursday by real estate services company CBRE Group Inc., the company signed a record 57 US warehouse lease agreements over 1 million square feet in 2021. This is a 19% increase from 2020 levels.NYSE: CBRE).. Of the 100 largest manufacturing and logistics leases, including 57 mega leases, the average transaction size increased slightly from just under 1.04 million square feet to 1.05 million square feet. CBRE tracks manufacturing and logistics activities in its industrial property business, but the majority of transactions are in the logistics arena.
Chicago, the strongest year of industrial activity in history, led all markets with a total of 12 million transactions in 12 transactions. Then there were 11 on Pennsylvania’s Interstate Highway 78 and 81, California’s Inland Empire Complex at 10, and Dallas / Fort Worth at 9.
The Greenville, South Carolina-Spartamberg market was the first to reach the top 10 in three of the top 100 transactions, according to CBRE data. Greenville-Spartanberg is classified by the company as an “emerging growth” market as an American with relatively affordable prices, a warm climate, business promotion policies, and the newly discovered flexibility of working from home. The growing population makes it an attractive place for industrial activities. Escape from larger and more expensive metropolitan areas.
Mega deals in markets like Greenville-Spartanberg are more because core industrial markets such as New York-New Jersey, Los Angeles, Atlanta, Baltimore-Washington Corridor are more space-constrained and costly to occupy. Will be common. John Morris, head of CBRE’s American industry and logistics business, said the market has “enough products” to meet current demand, but demand surges, labor shortages, and, in certain markets, megaprojects. “It’s less, much less,” he said. , There is not enough land.
The “general retail and wholesale” sector, which consists of occupants with online and physical stores, accounted for 44 of the 100 largest leases last year, from 32 transactions in 2020. E-commerce-only occupants shipping only to homes had the second 21 transactions, followed by restaurant users with 15 transactions.
E-commerce occupants closed 35 mega deals in 2020. This is an increase from 19 in the previous year. In 2020, the store was struck early in the COVID-19 pandemic, fearing that it would return to the store when consumers reopened, and found it convenient to order online, as more consumers ordered online. Demand for e-commerce has skyrocketed.
Big Box Warehouse Leasing Activity Set Record in 2021
https://www.freightwaves.com/news/big-box-warehouse-lease-activity-sets-record-in-2021 Big Box Warehouse Leasing Activity Set Record in 2021