DC

The facility in Wellford is the third of five high-tech, perishable good DCs or "PDCs" Walmart is launching for the U.S. market, tapping technology from Witron.

As tariffs and trade policy continued to create uncertainty, there were indications of increased industrial real estate leasing activity in the second quarter, according to the new edition of the Industrial Business Indicator (IBI), which was recently issued by San Francisco-based real estate investment trust company Prologis.

The report, entitled “North American Big Box Industrial Overview,” observed that going back to 2020, the largest North American markets for big box industrial space—which includes modern distribution and warehouse buildings that are 200,000 square-feet or more and with ceiling heights at least 28 feet clear—have added what it called an unprecedented 1.3 billion SF (square-feet) of new supply, expanding the big-box market rate by nearly 50%.

Occupiers signed leases for 49 mega distribution leases in 2024, topping the 43 signed in 2023 (2023 was the first year in which there was a decline in the number of mega distribution center leases—that saw sharp gains during the pandemic, topping out at 61 in 2022)

The report observes that while Big-Box industrial product was the beneficiary of the highest developer interest and tenant demand during what Colliers calls the “hyperactive real estate cycle in 2021 and 2022,” it has since returned to pre-pandemic levels, with less surplus and lower demand.

The new 162,836 square-foot DC is located at 8475 Automation Drive and 30 minutes from the Charlotte Douglas International Airport, said DHL. The company said that this facility is staffed by around 150 employees, working two shifts seven days per week and processing B2C (business-to-consumer) e-commerce domestic inbound and outbound parcels and packages for U.S-based online merchants.

enVista assisted a major client in streamlining operations by following a blueprint to success.

The company said that the new 138,500 square-foot facility will enable DHL eCommerce to process more B2C (business-to-consumer) domestic volume, supported by around 130 staffers, for customers in Virginia and the Mid-Atlantic region.

CBRE reported that the largest 100 industrial lease transactions in 2023 included 43 deals for 1 million square-feet (MSF) or more, which the firm describes as “megawarehouses.” This fell short of 2022’s record-high 63 deals and 2021’s strong 57 deals tally.  The average size of the top 100 leases came in at 986,744 square-feet, down from 2023’s record 1.07 MSF and the previous record set in 2021, at 1.05 MSF.

The national vacancy rate remaining low, at 4.8%, compared to a historical expansionary average of 6.1%, even as the pace of new deliveries quickened and added 70 basis point to market vacancies

In its “U.S. Industrial Q3 2023” report, CBRE found that third quarter construction starts saw a 37% decline, from the second quarter to the third quarter, and a 64% annual decline, to 40 million square-feet (MSF), which CBRE said lowered the under-construction total, for the third consecutive quarter, to 479 MSF.

The research paper, entitled “Future Proofing the Global Supply Chain:  How AI, Automation and Other Technologies Are Impacting Efficiency,” noted that logistics real estate investments outpaced revenue growth by 57% over the past decade despite advancements in automation and data analytics, which it labeled “the supply chain productivity paradox.”

In a research brief, entitled “Industrial Facilities Near Airports Command Rent Premiums,” CBRE explained that companies are locating distribution operations closer to airports, or air cargo ports, in order to counter various challenges, especially increasing transportation costs, which it said account for 45%-to-70% of overall supply chain costs—based on data issued by the company’s subsidiary CBRE Supply Chain Advisory. This represents a steep uptick compared to occupancy costs, which account for 3%-to-6%, said CBRE.

Following its most recent overture in early May, which was denied, San Francisco-based real estate investment trust company Prologis said it had finally closed the deal, announcing it had entered into a definitive merger agreement to acquire Indianapolis-based Duke Realty Corporation, a sustainable industrial real estate development and the largest domestic-only logistics REIT (Real Estate Investment Trust).

Lakeland, Fla.-based 3PL Saddle Creek Logistics Services recently announced it plans to open a new Las Vegas-based multi-client distribution center, which it said is scheduled to open in August 2022. Company officials said that this new facility will expand Saddle Creek’s western U.S.-based operations, in order to meet the news of both new and current clients.