Largest‑warehouse demand rebounds
WSJ coverage noted California is seeing a rebound in demand for the largest warehouses after years of slow leasing—big-box facilities are coming back into favor for large-scale distribution. That shift matters for submarket strategy and where institutional capital will concentrate. (x.com)
Cushman & Wakefield’s Large‑Format Deals Return found leases for facilities larger than 500,000 square feet jumped 32% year‑over‑year in the second half of 2025, with 113 million square feet of net absorption in newer, larger logistics buildings that represented 64% of nationwide absorption. (businesswire.com) Third‑party logistics providers and manufacturers drove nearly two‑thirds of that big‑box leasing, while build‑to‑suit activity rose 11% in 2025 and roughly one‑fifth of all leases above 500,000 square feet were tied to build‑to‑suit projects. (businesswire.com) Of the 104 large leases tracked in 2025, 71% were signed in markets priced below the U.S. average rent and nearly two‑thirds were in markets at least 20% cheaper than the national average, signaling occupier migration toward inland, lower‑cost submarkets. (businesswire.com) California’s Inland Empire accounted for the largest regional share of the nation’s top 100 industrial leases in 2025, recording 14 of those deals that totaled 11.8 million square feet. (cbre.com) In Q4 2025 Greater Los Angeles posted an average direct asking rate of $1.22 NNN per square foot per month, while CBRE data shows Inland Empire core taking lease rates averaged about $1.03 NNN per square foot per month as vacancy and sublease dynamics shifted across submarkets. (cbre.com) Institutional capital is re‑entering logistics selectively: Prologis and GIC announced a $1.6 billion U.S. build‑to‑suit JV covering an initial ~4.1 million square feet, and market reporting shows Clarion, Blackstone and Prologis among investors increasing industrial purchases as underwriting becomes more selective. (ir.prologis.com)
