Demand is increasingly shifting toward inland and lower-cost markets.
After slowing down in 2023 and 2024, leasing demand for warehouses of 500,000 square feet or larger bounced back sharply in 2025, most notably in the second half, according to new research from Cushman & Wakefield.
Their Large-Format Deals Return report found that those larger deals surged by 32 percent year-over-year, and that third-party logistics providers and manufacturers accounted for almost two-thirds of that. Overall, net absorption totaling 113 million square feet occurred in newer, larger warehouse and logistics facilities, representing 64 percent of the total nationwide.
The report attributes much of that activity to consolidation, as occupiers left multiple smaller, outdated buildings and regrouped into modern Class A facilities with higher clear heights, greater power capacity and updated infrastructure supporting automation and robotics, consistent with broader industrial market trends....
Their Large-Format Deals Return report found that those larger deals surged by 32 percent year-over-year, and that third-party logistics providers and manufacturers accounted for almost two-thirds of that. Overall, net absorption totaling 113 million square feet occurred in newer, larger warehouse and logistics facilities, representing 64 percent of the total nationwide.
The report attributes much of that activity to consolidation, as occupiers left multiple smaller, outdated buildings and regrouped into modern Class A facilities with higher clear heights, greater power capacity and updated infrastructure supporting automation and robotics, consistent with broader industrial market trends....
...more
RSK: Chicago and the entire Midwest is benefiting from this trend.
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- - Volume: 26 - WEEK: 13 Date: 3/24/2026 5:13:20 PM -