We use cookies to provide you with a better experience. By continuing to browse the site you are agreeing to our use of cookies in accordance with our Cookie Policy.
  • ::COVID-19 COVERAGE::
  • INDUSTRY PRESS ROOM
  • ABOUT
  • CONTACT
  • MEDIA FILE
  • Create Account
  • Sign In
  • Sign Out
  • My Account
Free Newsletters
  • MAGAZINE
    • Current Issue
    • Archives
    • Digital Edition
    • Subscribe
    • Newsletters
    • Mobile Apps
  • TRANSPORTATION
  • MATERIAL HANDLING
  • TECHNOLOGY
  • LIFT TRUCKS
  • PODCAST ETC
    • Subscriptions
    • Podcast
    • Webcasts
    • Blogs
      • Analytics & Big Data
      • Best Practices
      • Change Me
      • Empowering Your Performance Edge
      • The Logistics of Defense
      • Logistics Problem Solving
      • One-Off Sound Off
      • Public Sector Logistics
      • Two Sides of the Logistics Coin
      • Submit your blog post
    • Events
    • White Papers
    • Industry Press Room
      • Upload Your News
    • New Products
      • Upload Your Product News
    • Conference Guides
    • Conference Reports
    • Newsletters
    • Mobile Apps
  • DCV-TV
    • DCV-TV 1: News
    • DCV-TV 2: Case Studies
    • DCV-TV 3: Webcasts
    • DCV-TV 4: Viewer Contributed
    • DCV-TV 5: Solution Profiles
    • MODEX 2020
    • Upload Your Video
  • MAGAZINE
    • Current Issue
    • Archives
    • Digital Edition
    • Subscribe
    • Newsletters
    • Mobile Apps
  • TRANSPORTATION
  • MATERIAL HANDLING
  • TECHNOLOGY
  • LIFT TRUCKS
  • PODCAST ETC
    • Subscriptions
    • Podcast
    • Webcasts
    • Blogs
      • Analytics & Big Data
      • Best Practices
      • Change Me
      • Empowering Your Performance Edge
      • The Logistics of Defense
      • Logistics Problem Solving
      • One-Off Sound Off
      • Public Sector Logistics
      • Two Sides of the Logistics Coin
      • Submit your blog post
    • Events
    • White Papers
    • Industry Press Room
      • Upload Your News
    • New Products
      • Upload Your Product News
    • Conference Guides
    • Conference Reports
    • Newsletters
    • Mobile Apps
  • DCV-TV
    • DCV-TV 1: News
    • DCV-TV 2: Case Studies
    • DCV-TV 3: Webcasts
    • DCV-TV 4: Viewer Contributed
    • DCV-TV 5: Solution Profiles
    • MODEX 2020
    • Upload Your Video
Home » Food & beverage companies claim growing share of warehouse space as consumers demand grocery home delivery
newsworthy

Food & beverage companies claim growing share of warehouse space as consumers demand grocery home delivery

January 23, 2020
DC Velocity Staff
No Comments

E-commerce and logistics providers kept their crown as the biggest tenants overall for U.S. warehouse leasing, but red hot demand in 2019 for grocery home delivery made food & beverage companies the fastest growing sector, a new report from CBRE shows.

Grocers and distributors continued to build out their supply chains for home delivery in 2019, pushing them to claim 13 of the country's 100 largest industrial leases last year for a cumulative 13 million square feet, up from nine leases for 8.8 million square feet in 2018, CBRE said.

That increase was greater than any other sector, but the total warehouse space used for groceries is still far less than e-commerce and logistics companies (including third-party logistics providers (3PLs)), which accounted together for more leases (54) and square footage (45 million) last year within the top 100 than the next-closest category - wholesalers at 18 leases for 15.2 million square feet.

Still, the fast growth of grocery delivery took some wind out of the sails of the e-commerce and logistics giants, which accounted for 52% of the square footage in the largest 100 industrial leases last year, down from 61% in 2018

"This report, which our team completes each year, often provides us a rough outline of important trends within the industrial and distribution sector -- and the growth of grocery delivery is a clear factor this year," John Morris, executive managing director of CBRE's Americas Industrial & Logistics business, said in a release. "E-commerce and logistics companies are the needle movers, but food & beverage quickly has established itself as a major player in industrial real estate leasing. This projects continued growth for both dry and cold-storage warehousing this year."

In another change to the rankings, CBRE noted that several smaller geographic hubs in the industry jumped up the rankings, led by Memphis, Indianapolis, and Columbus. That change is rare to see, because large warehouse leases traditionally tend to cluster only in major distribution markets, most of which are near busy ports, large population centers, and robust transportation networks, the firm said.

Material Handling Logistics Network Design
KEYWORDS CBRE
  • Related Articles

    Growth In Online Grocery Sales Expected To Increase Demand For Cold Storage Warehouse Space: CBRE

    Rising Grocery and Meat Prices: the Impact of COVID-19 on U.S. Food and Beverage Industryge

    Rising Grocery and Meat Prices: the Impact of COVID-19 on U.S. Food and Beverage Industry

Recent Articles by DC Velocity Staff

Logistics gives back: April 2021

Watch that digital reef

Pandemic is just one threat to safety

You must login or register in order to post a comment.

Report Abusive Comment

Most Popular Articles

  • A look into the future of robotics

  • A primer on warehouse robots

  • Roadrunner Freight bolsters LTL capabilities with $50 million in new backing

  • Truck driver availability tightens to three-year low, ACT says

  • Southeastern Freight Lines Promotes Marty Cox to Service Center Manager in Cincinnati, Ohio

Now Playing on DCV-TV

9cddf77b a6f2 40d3 b603 004e451106fb

Dealing with Rapidly Rising Freight Costs

DCV-TV 4: Viewer Contributed
I don’t know if it’s because of our Two Minute Warnings, or the fact that shippers are experiencing the conditions we warned about in our Code Red webcasts, but lately, I’ve heard the same message from several C-Level and supply chain executives: Their companies are experiencing supply chain challenges and their...

FEATURED WHITE PAPERS

  • Special Report: Supply Chain Trends in Retail & Consumer Goods

  • Fortify Your Operational Resilience

  • Cold Storage Automation: Leveraging Advanced Technologies to Meet Increasing Demand

  • The modern warehouse: Maximizing productivity and capacity

View More

Subscribe to DC Velocity Magazine

GET YOUR FREE SUBSCRIPTION
  • SUBSCRIBE
  • NEWSLETTERS
  • ADVERTISING
  • CUSTOMER CARE
  • CONTACT
  • ABOUT
  • STAFF
  • PRIVACY POLICY

Copyright ©2021. All Rights ReservedDesign, CMS, Hosting & Web Development :: ePublishing