Phoenix ranks sixth nationally among the markets with the largest share of the top 100 industrial leases in the first half of 2024, according to a new report from CBRE.
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Phoenix had five of the top 100 largest industrial leases, totaling 4.6 million square feet. Three of the five leases were signed by e-commerce businesses, with manufacturing companies and third-party logistics operators each garnering one new lease apiece. The Valley tied with Atlanta in the number of leases during the year’s first half of 2024.
“Phoenix continues to be a significant player in the industrial sector,” said Cooper Fratt, senior vice president at CBRE. “In addition to the three major e-commerce leases this year, manufacturing and 3PLs reflect our city’s growing economic dynamism.”
National trends
Nationally, occupiers signed leases for 31 megawarehouses, or those 1 million sq. ft. and above, in the U.S. in the first half, a 35% increase from the 24 recorded in last year’s first half. Meanwhile, an abundance of new supply in the 1 million-square-feet-plus category contributed to first-year taking rents declining by 2.2% from 2023 levels. In contrast, lease rates for all sizes of warehouses increased by 7.7% in that timeframe.
CBRE outlines the megawarehouse leasing trends in its analysis of the largest 100 industrial & logistics leases of this year’s first half. The average size of leases in the largest 100 increased to 814,000 square feet from 791,000 square feet a year earlier.
Claiming the largest shares of the 100 leases were traditional retailers and wholesalers with 30, followed by 3PLs (29), e-commerce operators (14) and food & beverage companies (13). Third-party logistics providers handle clients’ warehouse and shipping operations on an outsourced basis.
Other top industrial leasing markets include:
To read the full report, click here.
