Record Demand for Mega Industrial Facilities in 2021

2021 was a record year for the U.S. industrial market, fueled by a rebounding economy, robust e-commerce sales and changes to supply chain strategies that required additional warehouse and distribution space. Demand for industrial buildings of all sizes surpassed 2020 totals, including in mega-distribution facilities of 1 million sq. ft. or more. The top 100 leasing transactions last year totaled 105.3 million sq. ft., slightly above 2020’s total and the largest amount since CBRE Research began tracking this metric in 2017.

General retailers and wholesalers that distribute to both online consumers and brick- and-mortar stores led with 44 transactions totaling 46.1 million sq. ft., compared with 32 transactions totaling 35 million sq. ft. in 2020. E-commerce-only occupiers accounted for 21 deals totaling 27 million sq. ft. in 2021, down from 35 totaling 35 million sq. ft. in 2020. Food & beverage companies accounted for more activity with 15 transactions totaling 14.2 million sq. ft., up from 11 transactions totaling 10.7 million sq. ft. in 2020.

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