According to a recent report by CBRE, the demand for large industrial and logistics warehousing space has decreased in 2023. The number of leases for spaces over one million square feet fell from 63 in 2022 to only 43 last year due to economic uncertainty and changes in inventory management practices.
Out of the top 100 industrial leases signed last year, there was a decrease of eight percent compared to the previous year. Additionally, traditional retailers and wholesalers accounted for fewer lease signings while third-party logistics providers saw an increase.
CBRE’s President of Americas Industrial & Logistics, John Morris stated that many occupiers had shifted their inventory management approach during the pandemic which led to increased demand for warehouse space. Although demand remains strong historically, it is expected that there will be fewer mega-industrial leases in both near and mid-term future.
The upcoming event Connect Industrial Midwest on March 5th at Joe’s Live in Rosemont Illinois will provide more information on this topic. For registration and further details about this event please click here.
