Warehouse Leasing

Introduction 

Finding space isn’t just a difficult task for people looking for affordable housing, it’s also a constant issue for people working in the logistics field.  Sometimes cargo can’t be shipped to its final destination immediately, creating the need for warehouse facility leasing.  Since the pandemic, this issue has been particularly exacerbated due to fluctuating amounts of products and general supply chain troubles.  This can be seen as the reason that big-box warehouse leasing fell in 2023, especially compared to previous years. 

Analysis 
According to FreightWaves, a record 63 big-box warehouse leases were signed in 2022.  This fell to 43 in 2023, a drop of about 68%, which is obviously quite a large downturn.  The most signed leases in 2023 came from traditional retailers, which had been the biggest leasers of big-box warehousing.  In a statement to CBRE, President of America Industrial and Logistics John Morris explained: “Throughout the pandemic and shortly thereafter, many occupiers were forced to shift from a ‘just-in-time’ to a ‘just-in-case’ approach.

This helped boost demand for warehouse space.”  Although demand for warehouse space is still extremely high according to Morris, However, we do not expect as many mega industrial leases in the near and mid-term as we saw in 2022,” he also said.  Again according to FreightWaves, the top areas for these leases are Pennsylvania, California, Chicago, Dallas-Fort Worth, Memphis, Tennessee, and Savannah. 

Conclusion 

It seems as though the never-ending struggle for storage space will continue to be just that.  With high demand and low supply, the effects the pandemic had on the supply chain are still being felt.  Only time will tell if the new year will balance things out, or if the battle will continue. 


Works Cited: Mega-warehouse facility leasing slowed in 2023, CBRE says – FreightWaves 

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