Businesses struggling with rising warehousing costs and operational inefficiencies may find solutions in the latest industrial real estate trends. A new report from CBRE reveals significant shifts in the U.S. industrial leasing market, with third-party logistics (3PL) providers emerging as the dominant force.
3PL Leasing Surges Ahead
The Dallas-based industrial real estate firm's report shows 3PL providers accounted for 38 of the top 100 U.S. industrial leases in the first half of 2025, totaling 28.9 million square feet (MSF). This marks a substantial increase from 28 leases during the same period last year, reflecting growing corporate preference for outsourcing warehousing and supply chain operations to reduce costs and improve efficiency.
Meanwhile, traditional retail and wholesale companies signed just 28 leases (21.4 MSF), while e-commerce companies showed the most dramatic decline - only seven leases (4.7 MSF) compared to 31 leases (13.2 MSF) in 2024.
E-Commerce Sector Recalibrates
The e-commerce industry's reduced footprint suggests strategic reassessment after years of rapid expansion. Companies appear focused on optimizing inventory management and distribution networks rather than expanding physical infrastructure.
Large warehouse leases (over 1 MSF) also declined significantly, with just 13 transactions (15.5 MSF) compared to 31 (34.5 MSF) in 2024. CBRE analysts attribute this to increased corporate caution regarding expansion and rising rental costs pushing companies toward smaller facilities.
Regional Market Variations
Southern California's Inland Empire led industrial leasing activity with 14 transactions (9.8 MSF), followed by Pennsylvania's I-78/I-81 corridor (9 leases, 6.3 MSF) and Dallas-Fort Worth (7 leases, 5.8 MSF). These regional disparities highlight the importance of strategic location selection based on economic conditions, infrastructure, and labor costs.
The Outsourcing Advantage
James Breeze, CBRE's Vice President of Global Industrial and Retail Research, notes that outsourcing distribution to 3PL providers allows retailers and wholesalers to reduce capital expenditures while gaining operational flexibility. "As product distribution grows more specialized and technologically demanding, partnering with expert 3PLs becomes the strategic choice," Breeze explained.
The report suggests that e-commerce companies' reduced leasing activity correlates with increased 3PL usage, as online retailers turn to specialized providers for efficient, cost-effective distribution solutions.
Strategic Implications for Businesses
The shifting industrial real estate landscape presents both challenges and opportunities:
Cost Reduction
3PL partnerships eliminate substantial capital investments in warehousing infrastructure, freeing resources for core business functions.
Operational Flexibility
Outsourcing enables rapid scaling to meet seasonal demand fluctuations and market changes without fixed infrastructure commitments.
Technology Access
3PL providers offer advanced inventory management systems and distribution technologies that might prove cost-prohibitive for individual companies to implement.
Regional Strategy
Companies should evaluate regional economic conditions, transportation networks, and labor markets when making location decisions.
As market conditions evolve, businesses that strategically leverage 3PL partnerships while optimizing their supply chain operations will be best positioned for success in this new industrial real estate environment.