A recent CBRE Update reports transactions (new leases, user sales, and renewals) for all size ranges continued its brisk pace in November 2020 but remained strongest in the bulk (100,000 square feet (sf)) size category. Nearly 40 million square feet (msf) of bulk space transacted in November, bringing the 2020 year-to-date total to nearly 440 msf, an all-time record and 26% higher than the prior year.
CBRE states this is because of the continued strength of the 3PL sector and resurgent demand in the General Retail and Wholesale sector. 3PL’s occupy more space than any other industry and had the largest market share for 2020 deals at 26.3%. 3PLs are being called upon at a much higher pace to keep safety stock, transport and store product in highly populated markets, and are growing in eCommerce capabilities.
The big story of November is the General Retail and Wholesale category overtaking E-commerce Only occupiers for second place.