3PLs Gain Larger Share of Top 100 Industrial Leases as Outsourcing Accelerates
PHOENIX (August 21, 2025) – Phoenix ranked fifth nationally among markets with the largest share of the top 100 industrial leases in the first half of 2025, according to a new report from CBRE.
Phoenix recorded four of the nation’s top 100 industrial leases, totaling 2.2 million square feet, with 24.4% of its transactions being renewals.
“Given Arizona's business-friendly environment, deep and diverse labor base, and proximity to the Port of Long Beach, Phoenix continues to see unprecedented demand in the big-box industrial sector, including distribution, e-commerce, apparel, and food and beverage users. Over the past 24 months, Phoenix has absorbed 9.5 million square feet in facilities greater than 700,000 square feet — a trend we expect to continue,” said Cooper Fratt, executive vice president at CBRE.
National Trends: 3PLs on the Rise, E-Commerce Pullback
Across the U.S., third-party logistics providers (3PLs) signed 38 of the 100 largest industrial leases, totaling 28.9 million square feet in H1 2025. That’s up from 28 leases during the same period last year.
By contrast, general retail and wholesale tenants — the largest category in 2024 — slipped to second place with 28 leases totaling 21.4 million square feet. E-commerce companies signed just seven leases totaling 4.7 million square feet, a sharp drop from 31 leases totaling 13.2 million square feet in H1 2024, as many e-commerce operators continue to recalibrate following a surge of rapid expansion.
Shift Toward Smaller Commitments
CBRE’s analysis also highlights a move away from mega-warehouse leasing. Leases of 1 million square feet or larger accounted for just 13 of the top 100 transactions, compared to 31 a year earlier. The average size of the top 100 leases fell to 718,000 square feet, down from 814,000 square feet in H1 2024, reflecting both higher rental rates and changing tenant strategies.
Leading Markets for Top 100 Lease Transactions in 2025
| Market | Number of Leases Within Top 100 (% Renewals) | Total Sq. Ft. of Those Leases |
|---|---|---|
| Inland Empire | 14 (55.2%) | 9.8 million |
| PA I-78/81 Corridor | 9 (60.7%) | 6.3 million |
| Dallas–Ft. Worth | 7 (29.1%) | 5.8 million |
| Columbus | 7 (0.0%) | 5.5 million |
| Chicago | 6 (36.6%) | 4.9 million |
| Central Valley, CA | 4 (39.1%) | 3.1 million |
| Memphis | 4 (54.3%) | 2.6 million |
| Charlotte | 4 (0.0%) | 2.4 million |
| Phoenix | 4 (24.4%) | 2.2 million |