A 36% year-over-year drop in 1 million-sq.-ft.-plus lease signings played a major role in an 18% decline in total industrial space leased in H1 2023 (373 million sq. ft.). The number of 1 million-sq.-ft.-plus deals fell to 23 in H1 2023 from 36 in H1 2022 amid economic uncertainty and waning occupier urgency to hold additional inventory.

The average size of the top 100 industrial lease transactions in H1 2023 was 789,471 sq. ft., much lower than the 926,683 sq. ft. average in H1 2022. More and more occupiers are renewing leases rather than signing new ones due to economic uncertainty. There were 36 renewals among the top 100 industrial lease transactions in H1 2023, compared with only 15 at this time last year.

General retailers/wholesalers accounted for 34 of the top 100 deals, followed by third-party logistics (3PL) operators with 33. Automobile, tires & parts dealers, driven by growth in electric vehicle manufacturing, accounted for nine of the top 100 deals. E-commerce retailers accounted for seven of the top 100, down from 14 at this time last year.