In the latest report by CBRE, it was revealed that third-party logistics (3PL) providers were responsible for leasing the majority of big-box warehouse space in 2023. The Inland Empire market saw a whopping 58.6% of all transactions completed by these providers, making it the most sought-after market for such spaces.
According to Ian Britton, senior managing director at CBRE, companies are increasingly turning to outsourcing and utilizing 3PL providers as a means to streamline their supply chains and increase efficiency while reducing costs associated with hiring labor forces and investing in material handling technology and automation.
The Inland Empire continues to be a highly desirable location for big-box warehouses with over 30 million square feet leased consecutively for four years. This is due in part to its strategic location allowing easy access to Southern California’s population of over 24 million people.
Although there has been an increase in available space due to completed construction projects and tenant move-outs, the overall vacancy rate remains low at just 3.7%. This places it fourth on CBRE’s list behind Mexico City, Los Angeles County, and Nashville.
This dominance of third-party logistics tenants in leasing big-box warehouses highlights their growing importance within supply chain management strategies across various industries.
