Colliers International Group Inc. has released its Industrial Logistics & Transportation Solutions 2016 Outlook – Big-Box Market Report, a comprehensive analysis of industrial big-box transactions in North America’s eight largest distribution markets. The study finds that 2015 was one of the strongest years to date for the industrial real estate sector in North America, with the big-box market leading in construction and transaction activity.
Colliers’ research of early activity in 2016 indicates another strong year for occupier demands—especially as the growing pressure from e-commerce for swift logistics will continue to influence this space across North America and beyond.
Key market highlights include:
- Atlanta: Big-box construction activity continues to grow, with 10.7 million square feet of new big-box construction currently underway.
- Chicago: Big-box construction is also driving this market, with 9.2 million square feet of new construction underway.
- Dallas: Despite a slight downturn in leasing activity in Q4 2015, big-box construction activity continues to expand, with 9.8 million square feet of new construction underway.
- Houston: With just 1.8 million square feet of new big-box development completed in 2015, the current 6.2 million square feet underway demonstrates substantial growth.
- Greater Los Angeles: Leasing activity increased 4.8 percent in Q4 2015 from Q3, and construction activity continues to grow, as well.
- Pennsylvania and New Jersey: Despite a 38.9 percent decrease in leasing in Q4 2015 from the prior quarter, construction activity continues to grow, from 12.1 million square feet completed in 2015 to 13.3 million square feet currently underway.
- Northern/Central New Jersey: Leasing activity in Q4 2015 increased an impressive 36.3 percent over Q3, with construction activity following suit; currently 3.8 million square feet of new big-box space is underway.
- Toronto: Leasing in Q4 2015 jumped a notable 296 percent over Q3, bringing total big-box leasing volume to 5.74 million square feet in 2015.