Commercial Real Estate News
U.S. Mega Distribution Centers Leasing Activity Grew in 2024
According to recent data from CBRE, the U.S. industrial real estate market saw a significant increase in mega distribution center leases (1 million sq. ft. or more) in 2024, fueled by robust online sales nationwide.
Occupiers signed 49 such leases last year, up from 43 in 2023. This increase follows the first decline in mega leases in 2023, after peaking at 61 in 2022 during the pandemic-driven surge.
Despite this growth, the average size of the top 100 industrial leases slightly declined to 968,000 sq. ft. from 987,000 sq. ft. in 2023. Lease renewals also increased, accounting for 40 of the largest 100 leases--up from 30 the previous year. This trend reflects economic uncertainty, prompting major occupiers to prioritize stability.
"The rise in lease renewals underscores a strategic shift in the market," said John Morris, president of Americas Industrial & Logistics at CBRE. "Companies are focusing more on stability and efficiency by extending existing leases in key logistics hubs."
Traditional retailers and wholesalers expanded their share of the top 100 leases to 38% from 30%, while the food & beverage, automotive, and building materials sectors saw declines. Notably, building materials suppliers and EV manufacturers were significantly less active than in 2023, allowing retailers and wholesalers to claim a larger portion of leases.
Third-party logistics (3PL) operators signed one fewer lease than in 2023, totaling 28 among the top 100. However, this remains well above pre-pandemic levels, highlighting the growing reliance on 3PLs for logistics management.
Established markets such as the Inland Empire, Pennsylvania's I-78/81 Corridor, and Dallas-Fort Worth led the country in mega-lease activity.
