Cushman & Wakefield Research Shows Large Warehouse Deals Roar Back as Big-Box Leasing Rebounds Across U.S.
MWN-AI** Summary
Cushman & Wakefield's recent research reveals a significant resurgence in large-format industrial leasing, particularly for warehouses exceeding 500,000 square feet. Following a brief slowdown in 2023 and 2024, demand surged by 32% year-over-year in the latter half of 2025, with third-party logistics providers (3PLs) and manufacturers driving nearly two-thirds of this activity. The report highlights that a total of 113 million square feet of new warehouse space saw net absorption, constituting 64% of the national total.
This uptick is largely attributed to businesses consolidating operations into modern Class A facilities, promoting a "flight to quality." Companies are increasingly moving away from smaller, outdated spaces in favor of higher-quality warehouses equipped with superior infrastructure for automation. Notably, build-to-suit development rose by 11% in 2025, with a substantial portion of large leases being tailored to tenant needs.
Cost sensitivity is another critical factor shaping leasing decisions. A substantial 71% of the 104 large leases signed in 2025 occurred in markets with rents below the national average, signaling a trend towards more affordable inland locations rather than traditional coastal areas. This strategic approach is aimed at efficiency and reduced occupancy costs amidst tightening supply and occupancy rates.
As vacancy rates for large warehouses fell by 140 basis points, demand is expected to continue its momentum into 2026, particularly for high-quality assets. For investors, the growing interest in well-located properties offers a favorable outlook for capital deployment and net operating income growth. In summary, Cushman & Wakefield anticipates that the industrial sector will experience sustained growth, propelled by large-format leasing and build-to-suit strategies.
MWN-AI** Analysis
In light of Cushman & Wakefield's recent analysis revealing a notable resurgence in large-format warehouse leasing, it's imperative for stakeholders in the industrial real estate market to refine their strategies moving forward. The data indicates a remarkable 32% year-over-year increase in leases exceeding 500,000 square feet, primarily driven by third-party logistics providers (3PLs) and manufacturers. This resurgence suggests a robust recovery phase for the sector, especially after a downturn in 2023 and 2024.
Key insights suggest that companies are strategically consolidating operations into Class A facilities equipped with modern infrastructure, such as increased power capacity and automation-ready designs. As a financial analyst, I recommend that investors prioritize high-quality assets in inland markets, where cost pressures are leading to increased demand. Nearly 71% of large leases signed in 2025 occurred in markets priced below the national average, indicating a shift away from traditional coastal locations. This trend points to an opportunity for investors to capitalize on emerging markets that offer significant growth potential without the premium cost of coastal properties.
Furthermore, the rise in build-to-suit development, which saw an 11% increase, indicates a shift towards tailored solutions for tenants. Investors should consider diversifying their portfolios to include these customized developments, which are positioned to meet the evolving needs of tenants seeking operational efficiency.
As vacancy rates for large warehouses decline, and user purchase activity peaks at levels unseen in a decade, the market outlook for 2026 remains promising. Investors should actively seek out modern industrial properties in strategic locations while monitoring occupancy trends closely. The combination of demand dynamics, shifting market preferences, and the focus on high-quality assets creates a favorable environment for both current operational decisions and future investment initiatives.
**MWN-AI Summary and Analysis is based on asking OpenAI to summarize and analyze this news release.
Large-format industrial leasing is back in a big way. According to new research from Cushman & Wakefield, demand for warehouses larger than 500,000 square feet surged in the second half of 2025, signaling a strong rebound in big-box activity after a brief slowdown in 2023 and 2024.
The report, Large-Format Deals Return , finds that deals over 500,000 square feet jumped 32% year over year, with third-party logistics providers (3PLs) and manufacturers accounting for nearly two-thirds of that activity. In total, 113 million square feet of net absorption occurred in newer, larger warehouse and logistics facilities, representing 64% of the nationwide total.
“This is a clear return of the large-format tenant,” said Jason Price, Americas Head of Logistics & Industrial Research at Cushman & Wakefield. “Companies are consolidating operations, upgrading to higher-quality facilities, and making more strategic decisions about where and how they deploy space.”
Consolidation and the ‘flight to quality’
The research shows that many occupiers are exiting multiple smaller, outdated buildings and consolidating into modern Class A facilities with higher clear heights, stronger power capacity, and infrastructure that supports automation and robotics. This “flight to quality” is also driving more build-to-suit activity, as tenants look to customize facilities for efficiency and long-term operations.
Build-to-suit development rose 11% in 2025, and nearly one-fifth of all leasing activity above 500,000 square feet was tied to build-to-suit projects. Large build-to-suit projects currently underway increased 14% year over year, positioning them as a key driver of net absorption in 2026.
Cost pressures reshape where companies grow
Cost sensitivity is also playing a major role in market selection. Of the 104 large leases signed in 2025, 71% were in markets priced below the national average rent, and nearly two-thirds were in markets at least 20% cheaper than the U.S. average. As a result, demand is increasingly shifting toward inland and lower-cost markets, and away from higher-priced coastal and port-adjacent locations.
“With occupancy tightening and new supply limited, tenants are getting more strategic about both location and design,” said Price. “We’re seeing a strong focus on efficiency, total occupancy cost, and long-term operational performance.”
Implications for occupiers and investors
The report also notes that vacancy rates for large warehouses declined by 140 basis points year over year, while user-purchase activity hit 36.7 million square feet in 2025, the highest level of the decade. With fewer large speculative projects in the pipeline and demand reaccelerating, conditions are expected to support improving occupancy and future rent growth, particularly for high-quality assets.
For investors, rising interest in well-located, modern industrial properties is supporting increased capital deployment and healthy net operating income growth, especially in key distribution markets.
Looking ahead
With large-format leasing back at multi-year highs, build-to-suit development accelerating, and cost-conscious strategies reshaping location decisions, Cushman & Wakefield expects momentum in the industrial sector to continue into 2026, especially for newer, larger logistics facilities.
The report is available to view here .
About Cushman & Wakefield
Cushman & Wakefield (NYSE: CWK) is a leading global commercial real estate services firm for occupiers and investors with approximately 53,000 employees in over 350 offices and nearly 60 countries. In 2025, the firm reported revenue of $10.3 billion across its core service lines of Services, Leasing, Capital markets, and Valuation and other. Built around the belief that Better never settles , the firm receives numerous industry and business accolades for its award-winning culture. For additional information, visit www.cushmanwakefield.com .
View source version on businesswire.com: https://www.businesswire.com/news/home/20260309530910/en/
Savannah Durban
savannah.durban@cushwake.com
FAQ**
How does the surge in large-format leasing reported by Cushman & Wakefield plc CWK align with current economic trends affecting logistics and manufacturing industries?
What specific factors are driving the "flight to quality" trend highlighted in the Cushman & Wakefield plc CWK report, and how might this impact future investments in industrial real estate?
With 71% of large leases in markets below the national average, how can investors leverage insights from Cushman & Wakefield plc CWK to identify promising locations for industrial property acquisition?
Given the projected momentum into 2026, what strategies should investors consider to capitalize on the findings from the Cushman & Wakefield plc CWK report on large-format leasing and build-to-suit developments?
**MWN-AI FAQ is based on asking OpenAI questions about Cushman & Wakefield plc (NYSE: CWK).
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