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California’s Inland Empire Takes Warehouse Deal Crown for 2018
E-commerce and logistics companies claimed a larger share of the 100 largest industrial and logistics leases signed in 2018 than they did a year earlier, underscoring the growing influence of those companies on U.S. warehouse construction, according to a new report from CBRE. Last year’s mega industrial leases were spread across 32 markets, with many clustering in leading logistics hubs, with California’s Inland Empire topping the list (20 leases).
CBRE’s Barbara Perrier says, “The Inland Empire combines some of the key requirements of today’s e-commerce and logistics providers. It sits close to Southern California’s massive population base as well as in proximity to the ports, it is home to some of the newest, most advanced state-of-the-art facilities required by most e-commerce tenants, and it’s in a location that is ideal for companies that have a coastal strategy, meaning they want to have a presence on both U.S. coasts.”
CBRE’s analysis of last year’s industrial leasing activity in the U.S. found that 61 of the largest 100 leases were signed by e-commerce companies and logistics firms for a total of 61.5 million square feet. In the previous year, those two sectors claimed 52 of the largest leases for a cumulative 43.2 million square feet.
Regardless of industry, the largest industrial leases got even bigger last year. The top 100 from last year – spanning uses such as e-commerce, logistics, manufacturing, food and beverage, technology and retailing – totaled 19% more space than the largest of 2017.
The top five markets following the Inland Empire included Pennsylvania’s I-78/I-81 corridor (11 deals), Dallas-Fort Worth (10), Atlanta (nine) and Chicago (five).
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