The latest CBRE report on Americas industrial and logistics trends reveals a market in transition—one marked by sustained growth but evolving demand patterns. As e-commerce, third-party logistics (3PL), and food/beverage sectors drive leasing activity, investors must adapt strategies to capitalize on emerging opportunities.
Market Overview: Steady Growth Amid Moderating Momentum
Key indicators suggest resilience across the Americas logistics real estate sector, though growth rates have tempered from peak levels observed in 2016:
Key Metrics
- Net absorption extended its growth streak to 28 consecutive quarters, with occupancy rates reaching 95.2%—the highest since 2002.
- Vacancy rates declined by 10 basis points to 4.8%, while availability rose slightly to 8%, reflecting persistent supply constraints.
- Rental rates climbed 1.6% quarterly and 6.7% annually, reaching $6.24/sq. ft.—a record high since 1980.
- Development activity totaled 46.5 million sq. ft. in Q1, down 11% from 2016 peaks but up 17.4% year-over-year.
- Investment volume grew 3.2% to $13.9 billion, with single-asset sales increasing 15% annually.
Sectoral Drivers: E-Commerce, 3PL, and Food/Beverage Lead Demand
Three industries dominate current leasing activity:
E-Commerce
The sector's insatiable need for fulfillment centers, last-mile facilities, and automated warehouses continues to reshape logistics real estate requirements.
Third-Party Logistics (3PL)
Providers expanding service offerings require larger, technologically advanced facilities to handle growing shipment volumes for diverse clients.
Food & Beverage
Cold storage demand surges as consumers prioritize fresh goods, driving specialized facility requirements from production to distribution.
Geographic Shift: Secondary Markets Gain Prominence
Unlike the 2012-2014 cycle when demand concentrated in primary hubs like Chicago and Los Angeles, current growth increasingly flows to:
- Midsize markets with lower land costs
- Areas with less congested transportation networks
- Locations offering competitive labor markets
- Emerging population centers with underserved logistics infrastructure
Strategic Implications for Investors
Opportunities
- Target high-growth secondary and tertiary markets
- Develop specialized facilities (cold storage, automated warehouses)
- Leverage technology to enhance asset productivity
Challenges
- Navigating tight supply conditions
- Managing rising operational costs
- Addressing labor shortages through workforce innovation
Future Outlook
The sector's trajectory points toward greater emphasis on flexibility, sustainability, and technological integration. As market dynamics continue evolving, successful investors will distinguish themselves through:
- Data-driven site selection
- Responsive development strategies
- Adaptive reuse of existing assets
While macroeconomic uncertainties persist, the fundamental drivers of logistics real estate demand—particularly e-commerce growth and supply chain modernization—remain firmly intact across the Americas.