The US market for distribution center and warehouse space continues to be red hot. But where is the action?

The real estate pros at CBRE shed some light on that in a brief report last week, looking first at what industry sectors were responsible for leasing the 100 largest DC spaces in the first half of 2018.

As can seen in the graphic below, third-party logistics (3PLs) and ecommerce companies accounted for 56% of the 100 largest warehouse leases by square footage in 1H 2018, which totaled 67.8 million square feet and ranged in size from 417,000 to 2.0 million square feet. Thirty of the 100 leases were for warehouses sized 750,000 square feet or more, "reflecting demand for modern buildings that have become larger and taller in recent years," the report notes.

The CBRE also looked at DC lease action by different market areas, as shown in the graphic below:

Geographically, these transactions were spread across 28 markets, with Southern California's Inland Empire, Atlanta and Chicago having the largest square footage amounts.

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