Mega leases in the first half totaled 31 compared with 24 versus the last six months in 2023, according to a report from CBRE. The firm said those leases made up a “greater share” of the total inside the top 100.
“Occupiers seized the opportunity to lease mega facilities at rental rates that were driven lower by elevated new construction completions in recent years,” it wrote.
The size of the leases from the top 100 industrial leases that were cited, measured 81.4 million square feet in the first half. That’s up from the 79.1 million figure in the same period last year. Of the 100 companies this year, 41 of them were identified as lease renewals, which was also higher than 2023′s first half of 35.
The top occupiers on the list belonged to wholesalers and retailers, which swooped up 30 leases in the first half. That’s down slightly from the 34 it had in the same period last year. Third-party logistics wasn’t far behind in the first six months of the year, with 29. E-commerce and food and beverage finished in third and fourth place, with 14 and 13 leases, respectively.
The most prominent market in the first half goes to the Inland Empire, which was home to 15 leases for a total of 13.5 million square feet. Memphis and Dallas-Ft. Worth was tied for second, with nine apiece.
Atlanta and Phoenix saw the worst leasing activity, with five each.
Overall, CBRE forecasts a “steady” second half of the year for mega distribution centers, before demand gets boosted in 2025. That accounts for economic uncertainty and interest rates dropping.
“Increased demand, coupled with less new supply coming online could result in higher rentals in 2025,” the commercial real estate group said.