Phoenix megawarehouses are in style – in a big way, according to a new report from CBRE. 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. Phoenix ranks as a leading market with four large industrial lease transactions accounting for over 4 million sq. ft. in total.
This prevalence of megawarehouses 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.
“Phoenix exhibits a respectable amount of available industrial land with the proper infrastructure in place: steady, six-figure annual positive net migration, affordable housing and relatively close proximity to the 35-million-person Southern California marketplace,” said CBRE’s Pat Feeney in Phoenix. “These positive attributes, coupled with a ‘pro-business’ environment, have propelled Phoenix out of the tertiary market classification of the past.”
Leading Markets For Top-100 Industrial Leases in First Half 2022
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.
To read the full report, click here.