By Joshua Burd
Third-party logistics firms are leading the way among tenants seeking big-box industrial space, accounting for more leasing activity than any other occupier type in New Jersey and nationally.
A report by CBRE found that 3PL providers last year drove 41 percent of all leasing volume in North America, specifically among deals of 200,000 square feet or larger. In the process, the industry claimed the largest share of big-box activity for the first time since CBRE began tracking the data in 2012, overtaking retailers and wholesalers.
In northern and central New Jersey, logistics firms accounted for more than half of all big-box space leased in 2022, reflecting a service that has become increasingly more appealing. CBRE noted that 3PL users typically operate companies’ logistics and warehousing operations on a contractual basis, gaining efficiencies by handling that work for multiple clients simultaneously.
“As a result of enduring pandemic-era shifts, companies have expanded their reliance on 3PL partners to create resilient supply chains and economically address customer needs,” CBRE wrote in a summary of the report. The real estate services firm added that retailers and wholesalers, the previous leader in big-box leasing activity, fell to second place with a 35.8 percent share, while food and beverage users were a distant third with 8.7 percent.
The trend has continued through the early part of 2023. According to CBRE, deals by GXO Logistics, Vanguard Logistics and Coda Logistics & Distribution represented three of the top four new leases in northern and central New Jersey during the first quarter of 2023.
Overall, 3PL occupiers accounted for 48 percent of Q1 activity in New Jersey, CBRE said representing an increase of 800 basis points from the previous quarter. Researchers added that leasing by wholesale and retail companies “fell off dramatically,” from 40 percent in the previous quarter to 11 percent.
