CBRE

CBRE reported that the largest 100 industrial lease transactions in 2023 included 43 deals for 1 million square-feet or more, which the firm describes as “megawarehouses.” This fell short of 2022’s record-high 63 deals and 2021’s strong 57 deals tally.  The average size of the top 100 leases came in at 986,744 square-feet, down from 2023’s record 1.07 MSF and the previous record set in 2021, at 1.05 MSF.

As demand for North American warehouse space soars, third-party logistics providers find new ways to serve their growing customer bases.

CBRE found that third quarter construction starts saw a 37% decline, from the second quarter to the third quarter.

Industrial real estate firm's research finds 36% annual decline in 1 million square-foot-plus leasing activity in the first half of the year. CBRE said that the number of 1 million square-feet deals dropped from 36, in the first half of 2022, to 23, for the same period in 2023.

In a research brief, entitled “Industrial Facilities Near Airports Command Rent Premiums,” CBRE explained that companies are locating distribution operations closer to airports, or air cargo ports, in order to counter various challenges, especially increasing transportation costs, which it said account for 45%-to-70% of overall supply chain costs—based on data issued by the company’s subsidiary CBRE Supply Chain Advisory. This represents a steep uptick compared to occupancy costs, which account for 3%-to-6%, said CBRE.

Warehouses and fulfillment centers are increasingly automated, asset-intensive operations with multiple types of automation systems and robotics that need to work together to hit throughput goals. Consulting and assessments can identify likely solutions, but to get a solid prediction of what integrated systems can achieve, digital models and simulation are being widely used.

CBRE explained that following a record year, in the U.S. industrial real estate market in 2021, market conditions carried over into the first quarter, with strong demand for space remaining the common theme.

n its “North American Overview,” CBRE looked at the 23 “most dynamic” North American big box markets, finding that big box transactions represented 450 million SF across these markets (in the United States, Canada, and Mexico), marking a 29% annual gain over 2020’s 350 million SF.

Today’s robotic and data-driven automation systems can minimize disruptions and improve the life and productivity of warehouse operations.

Report, “Industrial Occupiers Experiencing Sticker Shock at Lease Expiration,” pointed to how strong demand and new construction delays have reduced the industrial vacancy rate down to 3.6% in the third quarter, whereas annual rent growth increase a record-high 10.4%.

Even though the most-dire days of the COVID-19 pandemic may be in the past, that, by no means, has pumped the brakes on the frenetic pace of e-commerce activity, driven by the steady drum beat of consumer demand. That was evident in the findings of a report recently issued by Los Angeles-based industrial real estate developer CBRE.

E-commerce sales are booming and warehouse space is expensive and hard to find. Here’s how creative companies can make the most out of their unused overhead space.

Data recently issued in a report by Los Angeles-based industrial real estate developer CBRE highlighted the impact that the ongoing COVID-19 pandemic had on the United States industrial real estate market, for both the fourth quarter and calendar year 2020.

With the ongoing Covid-19 pandemic continuing to change myriad aspects of everyday life, holiday season shopping is not an exception, according to the 2020 U.S. Retail Holiday Trends Guide, which was issued this week by industrial real estate firm CBRE.

n a report, entitled “The Changing Flow of International Trade: Impact on Global Supply Chains & Industrial Real Estate,” explained that the need for United States shippers to spread out sourcing and manufacturing outside of China is being heightened by rising labor costs in China and ongoing trade conflicts, adding that diversifying supply chains throughout Asia, in what it called a multi-country strategy, or “China Plus One,” to “reduce supply chain dependency on China alone” is a strong approach.