E-Commerce Demand Equates to Mere 0.5% Vacancy in GLA and IE

Last year was a record year for large warehouse leases, driven by a rebounding economy and strong e-commerce sales. Companies committed to 57 U.S. warehouse leases of 1 million square feet or larger in 2021, a 19 percent increase from 2020, according to CBRE.

CBRE charted the increase in mega-warehouse leases as part of its analysis of the 100 largest U.S. industrial and logistics leases of 2021. CBRE found among those 100 leases, the average 2021 transaction size increased to 1.053 million square feet, slightly above 2020’s average of 1.038 million square feet.

“Over the past decade-plus, the Inland Empire has proven to be one of the most dynamic markets in the country, given its proximity to the Ports of LA and Long Beach while sitting in the region’s epicenter of the freeway system, providing direct access to key population centers in Southern California and the 11 Western states,” said Ian Britton, managing director at CBRE’s Ontario office. “With the rapid adoption of e-commerce and an overall boost in consumption, demand has never been more robust with just a mere 0.5 percent vacancy rate across Greater Los Angeles and the Inland Empire. E-commerce, third-party logistics providers, and general retail and wholesale lead the way in terms of leasing activity. Our region’s mega-warehouse facilities allow companies the opportunity to consolidate operations and increase efficiencies while reaching close to 70 million people across Southern California and tap into the 13th largest economy in the world. Overall demand in the region exceeds the amount of warehouse space under construction by a ratio of two-to-one.”