Industrial Firms Clear Away Glut of Big-Box Warehouses
Industrial firms are rapidly leasing large-scale warehouses as supply chain concerns and geopolitical tensions drive companies to stockpile goods. This trend has reversed the post-pandemic warehouse glut and shifted pricing power back to landlords.
Why it matters
The shift in industrial real estate reflects broader economic adjustments to supply chain volatility and changing manufacturing policies in the United States.
Industrial firms are flocking to fill a glut of big-box warehouses nationwide.
Businesses are inking megadeals for the surplus of big-box warehouses originally built to meet projected post-pandemic demand before tariffs and a war in the Middle East reset the market, Bisnow reported .
Deals for more than 500,000 square feet lead the way, with tenants in the largest warehouses being squeezed with rent hikes at a faster pace than their smaller peers.
The supply of large buildings built during the pandemic is being snapped up at a quick clip. As a result, pricing power has shifted back to landlords, according to Bisnow
“We saw the vacancy almost evaporate in many markets where there were a number of big boxes available,” Stephanie Rodriguez, national director for industrial services at Colliers, told the publication. “All of a sudden, they were gobbled up.”
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