Congestion calls for more decisions around logistics
Of the top 3 leased industries for the most congested markets in H1 2019, in terms of square feet, almost 60 percent of leases are logistics-related
July 31, 2019
- These are the 15 most congested metros in the U.S., determined here by the most people who commute 60 minutes or more to work on a daily basis, with New York as the most congested, pushing nearly 10 million people.
- Of the top 3 leased industries for the most congested markets in H1 2019, in terms of square feet, almost 60 percent of leases are logistics-related. Looking at only the top industry leased, that share jumps to roughly 75 percent. Logistics-related industries include 3PLs, Logistics & Distribution and Retailer (e-commerce).
- High levels of congestion make moving around urban areas that much more difficult. Industrial tenants have to think more and more carefully about how to most efficiently get their products into the hands of consumers. Thus, we’re seeing logistics-related leases feature prominently in these hard-to-navigate markets.
- Almost every single market has a logistics-related industry in its top 3 (except Seattle), with 3PLs topping the list. This points to the probability of a more diverse set of industries looking for the expertise that 3PLs provide as they ramp up delivery operations and navigate congestion.
Source: JLL Research, US Census Bureau