Inbound Logistics | March 2025

TAKEAWAYS Shaping the Future of the Global Supply Chain

Bigger is better. That seems to be the consensus in the U.S. industrial real estate market, according to recent CBRE data that shows a notable rise in mega distribution center leases—1 million square feet or more—in 2024, driven by strong online sales nationwide. The mega trend picked up pace with 49 such leases signed last year, up from 43 in 2023. This increase follows the first decline in mega leases in 2023, after peaking at 61 in 2022 during the pandemic-driven surge. Overall, 40 of the top 100 industrial real estate leases were renewals, up from 30 the previous year. “This rise in lease renewals underscores a strategic shift in the market,” notes John Morris, president of Americas Industrial and Logistics at CBRE. “Companies are focusing more on stability and eciency by extending existing leases in key logistics hubs.” Additional insights from the report include the following: Market share shifts ( See chart below ): • Retailers and wholesalers now make up 38% of the top 100 leases, up from 30% previously. • Food and beverage, automotive, and building materials sectors saw declines. • EV manufacturers and building materials suppliers were less active compared to 2023. • 3PLs maintain a strong presence, with 28 leases signed among the top 100. Top markets for mega-lease activity : • Inland Empire • Pennsylvania’s I-78/81 Corridor • Dallas-Fort Worth MEGA MOMENTUM

OVERHEARD

FIVE TO THRIVE Five competitive characteristics are needed for future readiness, according to a recent Gartner poll of top supply chain practitioners across industries and geographies. Chief supply chain ocers say they need these characteristics to manage the future drivers of influence on the supply chain. They are: 1 Agility 2 Resilience 3 Regionalization 4 Integrated ecosystems 5 Integrated enterprise strategy Interestingly, the survey shows just 29% of supply chain organizations have developed at least three of these key characteristics. How does your organization stack up?

Leasing Activity by Sector

General retail and wholesale Third-party logistics Ecommerce only

Food, beverage Automobiles, tires, and parts Building materials and construction Manufacturing

Medical

0 5 10152025303540

Source: CBRE

Number of Leases

14 Inbound Logistics • March 2025