Industrial leasing reaches file quantity – Business Property Govt

Industrial Corridor. Picture courtesy of EFAFLEX_Shnelllaftoure by way of

In keeping with a report, 37 of the highest 100 industrial lease transactions for the primary half of 2022 have been for 1 million sq. toes or extra. CBRE, This is a rise of greater than 54 % by the primary half of 2021 from 24 leases of that quantity.

On common, the scale of the highest 100 leases within the first half of 2022 was 931,860 sq. toes. Compared, for a similar interval in 2021, the sq. foot common of the highest 100 was 800,149. This represents a 16.5 % enhance in warehouse dimension.

Common retail and wholesale accounted for 40 of the highest 100 transactions, whereas third-party logistics got here second with 30 leases. The next varieties of industrial lease offers are ranked as follows: e-commerce with 12, meals and beverage with eight, car tires and components with 5, constructing supplies and building with three and drugs with two.

Learn additionally: Why single-tenant web lease could also be at its peak

As for markets, Atlanta led 12 of the highest 100 industrial leases within the first half of 2022. 5 of them have been for 1 million sq. toes or extra. Chicago was trailing with 11, whereas Savannah, Ga., was the highest rising market with seven.

With the general emptiness fee at a file low, leasing exercise has totaled 454 million sq. toes to date this yr, up 44 % in comparison with the primary half of 2020.

Industrial leases are anticipated to see additional progress in exercise in markets with the best charges of progress, akin to Phoenix, Dallas, Chicago and Atlanta. As of June, year-on-year complete building was up 5% within the first half of 2022, when in comparison with the identical interval in 2021. Manufacturing begins have been up 83 % on a year-over-year foundation.

Though leasing demand for areas over 700,000 sq. toes elevated by greater than 24 %, there was a slight decline in demand for light-industrial areas lower than 25,000 sq. toes.

Variety of industrial leases per market within the first half of 2022.

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