CBRE Research
In 2022, a record was set for 1 million square feet industrial leases. Over 63 leases were signed in 2022 and the average size of the place leased went up from 2021. In 2021 the average size was 1.05 million square feet Even though an economic slowdown is incoming, people are still leasing mega big box facilities. This phenomenon is not likely to change, and leasing will remain the same this year as many occupants shore up their e-commerce and inventory protection capabilities. There is also likely to be a higher demand for mega distribution centers in 2023.
From CBRE:
- 63 signings for 1 million square feet or more were among the top 100 industrial lease transactions in 2022, up from 57 in 2021.
- The top 100 in 2022 had an average size of 1.07 million square feet, compared with 1.05 million square feet in 2021.
- Twenty-four of the top 100 were renewals, six more than in 2021, indicating that more occupiers are opting to remain in their current facilities.
- Traditional retailers/wholesalers accounted for 53 of the top 100 deals, expanding their footprints to accommodate e-commerce sales growth and store more inventory.
- Third-party logistics (3PL) operators signed 18 of the top leases, up from only 10 in 2021 and seven of which were for 1 million square feet or more versus just two in 2021. E-commerce companies followed with 14 of the top 100, down from 21 in the previous year.
- Inland Empire, CA led all markets with 17 of the top 100 leases, including a record 11 of 1 million square feet or more. Chicago followed with 11 of the top 100. Savannah was the top emerging market with six of the top 100, up from just one a year ago.
- The smallest lease in the top 100 was for 760,000 square feet Deals for 750,000 square feet and above were the second most on record, surpassed only by 2021.
