Third-party logistics providers were responsible for a majority of the industrial real estate market’s largest transactions in 2025. This trend reflects the increasing number of major corporations choosing to outsource their supply chain operations. Of the top 100 industrial leases, 3PLs accounted for 44, a 57% jump from the 28 leases they signed in 2024, according to a Monday report from CBRE Group.
“The significant increase indicates that large companies are relying on 3PLs to manage their complex logistics so they can focus on their core business,” the commercial real estate firm said, specifically pointing to an increase in e-commerce activity.
Retailers and wholesalers accounted for the second-largest share of the top 100 leases. However, the group inked just 28 deals last year, which was 10 fewer than in 2024. The automotive sector was the only other group to see an increase, signing seven of the top 100 leases in 2025 compared to five in 2024.
“Occupiers committed to larger footprints and longer lease terms as they took advantage of opportunities to upgrade their space amid a continued flight to quality trend,” said John Morris, president of Americas Industrial & Logistics at CBRE. “2025’s activity reflects continued strong demand for large distribution facilities as occupiers prioritize scale, efficiency, and long-term supply chain solutions.”
The top 100 leases covered 98.8 million square feet in 2025, up 2 million square feet year over year. New leases accounted for 78 of the 100 (77.6 million square feet) as industrial occupiers upgraded to modern facilities. New leases represented 60 of the top 100 in 2024.
California’s Inland Empire held the largest share (14 leases totaling 11.8 million square feet), followed by Chicago (8 leases totaling 8.7 million square feet) and Dallas-Fort Worth (8 leases totaling 8.3 million square feet).
Of the top leases, the average property size was 988,000 square feet, an increase of 20,000 square feet. The average lease term was 98 months, a six-month increase.
“The increase in lease terms is due to the stabilization of supply and rent growth,” the CBRE (NYSE: CBRE) report said. “As a result, landlords are now more focused on maintaining occupancy and securing tenants for longer periods. Some landlords are offering incentives to lock in occupancy and reduce turnover risk.”
Warehouse operator Prologis (NYSE: PLD) said last week that the market has turned, noting vacancy rates have already peaked and that rents are turning positive in some markets. The company’s 2026 outlook calls for improvement in key metrics like net absorption, occupancy and rents.
Prologis expects net absorption of 200 million square feet in 2026 (compared to 155 million square feet last year) as new warehouses coming online fall to 180 million square feet (from 200 million square feet last year). The changes are expected to reduce vacancies from 7.4% to approximately 7.1% to 7.2%, placing upward pressure on rents throughout the year.
Prologis touted record lease signings in 2025, with the e-commerce sector accounting for 20% of new deals.
