Mega-box continues to grow in Q3; where are the e-commerce leases?
Mega-box leases continue to grow in Q3 reaching a YTD total of 14 signed leases of 1 m.s.f. +.
November 13, 2019
- Mega-box leases continue to grow in Q3 reaching a YTD total of 14 signed leases of 1 m.s.f. +. With Q4 showing no signs of slowing down, 2019 is on course to outpace 2018 which totaled 17 mega-box leases inked.
- Unlike years past, e-commerce has yet to sign a 1 m.s.f.+ lease in 2019. Even with this year’s drop, though, the industry surpasses others with the most mega-box leases signed since 2017. The e-commerce industry is active – just in smaller buildings. e-commerce is strategically focusing on last mile locations rather than the mega-box leases. These urban logistics locations position tenants closer to a denser consumer base to increase supply chain efficiency. More than half of e-commerce leases signed this year are under 100,000 s.f.
- On the flip side, 3PLs increased their leasing activity and are outperforming Logistics & Distribution mega-box leasing activity YTD 2019. Retailers are becoming more active in the supply chain reset and are utilizing 3PLs to get into the game quickly.
Source: JLL Research