As you may know just by all the Amazon craze in our own area, e-commerce is quickly sweeping the U.S. industrial market, as reported by Bisnow.
E-commerce companies and logistics firms signed 61 of the largest 100 leases of last year, for an insane total of 61.5M SF. In 2017, those two sectors claimed only 52 of the largest leases for a cumulative 43.2M SF. At this rate, it’s only up from here.
Of the 41 e-commerce leases signed these deals include retailers that are implementing omnichannel strategies. And 40% of the 20 huge deals logistics companies signed involved e-commerce distribution.
Fifty of the 100 deals were for warehouses sized 970K SF or more. This reflects a demand for larger, more modern buildings.\
“These figures show there still is a lot of momentum behind e-commerce uses in U.S. warehouse leasing, despite concerns that the sector’s expansion may be reaching its later stages,” CBRE Global Head of Industrial & Logistics Research David Egan said in a statement. “We expect this type of leasing momentum to continue in 2019.”
A recent report by JLL reached the same conclusion. They reported that e-commerce and logistic industries enjoyed more leasing activity in 2018 than any other sector. Not to mention, these companies signed eight out of 13 leases of 1M SF or more last year, according to JLL. That’s a whopping 62% of the total, up from 52% in 2017.
All of this is happening because the spaces are there to allow it to happen. The leasing market for e-commerce ready spaces is hot right now and driving development and rent growth. In only 3 years nearly one billion square feet of new industrial space became available. And some say demand is growing even stronger.
Now the real question is: With all of this new space, where’s Amazon going to put that new headquarters?