The Dominance of 3PLs in Today's Warehouse Leasing Landscape

In the rapidly evolving logistics and supply chain landscape, third-party logistics providers (3PLs) have emerged as pivotal players, fundamentally reshaping the dynamics of warehouse leasing. As e-commerce continues to experience explosive growth, the demand for efficient and flexible warehousing solutions has surged, compelling businesses to rethink their logistics strategies. This transformation has positioned 3PLs at the forefront, offering comprehensive solutions that integrate transportation, warehousing, and inventory management under one roof.

Their ability to provide scalable and technology-driven services allows companies to adapt swiftly to market fluctuations and consumer demands, making them indispensable in today’s competitive environment. Moreover, as businesses seek to optimize costs and enhance operational efficiency, partnering with 3PLs has become an attractive option for companies of all sizes.

This article delves into the factors contributing to the dominance of 3PLs in the warehouse leasing sector, exploring their innovative approaches, the impact of technological advancements, and the strategic advantages they offer to businesses navigating the complexities of modern logistics. By examining the current trends and future outlook of 3PLs, this discussion aims to elucidate their critical role in shaping the future of warehouse leasing and supply chain management.

3PLs Lead Industrial Real Estate Leasing Surge

This week, two significant reports from prominent industrial real estate firms highlighted that the third-party logistics (3PL) sector has emerged as the most active participant in acquiring new space.

According to CBRE Group, Inc. (NYSE: CBRE), the largest commercial real estate services firm in the world, 3PLs secured more leases for properties exceeding one million square feet than any other industrial sector in the first half of this year. Specifically, third-party logistics providers occupied 38 of the top 100 industrial leases, totaling an impressive 28.9 million square feet.

In comparison, during the first half of 2024, 3PLs signed only 28 leases, covering 20.6 million square feet. This surge underscores how the logistics sector is expanding aggressively to meet evolving supply chain demands, even as other industries scale back. The report indicated that 3PLs have capitalized on the expanding mega lease market as numerous retailers and manufacturers increasingly outsource their warehousing and distribution functions in light of rising rent and operational expenses.

Decline in E-Commerce Leasing Activity

In contrast, activity among e-commerce tenants has significantly declined. The report revealed that this group experienced a staggering 77% year-over-year reduction in lease signings, with only seven new leases recorded, and a 64% drop in total square footage leased, falling to 4.7 million square feet.

This slowdown reflects a broader restructuring within the e-commerce sector as many companies continue to downsize following a period of aggressive expansion during the pandemic. The market correction illustrates a shift from growth-driven real estate acquisition toward cost optimization and efficiency. As operational costs rise, many e-commerce firms are consolidating their existing spaces rather than acquiring new ones. This pullback has left room for logistics providers to take the lead in securing available large-scale industrial properties.

JLL Report Highlights Rising Demand from Logistics and 3PL Tenants

A separate annual demand analysis by JLL, Inc. (NYSE: JLL) revealed that tenants focused on 3PL, logistics, and distribution now represent the largest segment of the leasing pipeline. Demand from this group has risen by 12.8% year-over-year to reach 185.4 million square feet, underscoring a strong growth trajectory in logistics-oriented leasing.

On the other hand, traditional retailers have reduced their anticipated space requirements by 16.7% year-over-year. This contrasting trend between logistics and retail tenants demonstrates how uncertainties in trade policy and escalating costs are fundamentally reshaping industrial real estate dynamics.

Retailers are adopting a more cautious approach in response to fluctuating global trade conditions, while logistics providers are proactively positioning themselves to mitigate supply chain disruptions. This shift reinforces the growing role of 3PLs as strategic partners in ensuring operational stability and efficiency.

Manufacturers and Build-to-Suit Properties Gain Momentum

Looking ahead, logistics-oriented tenants are projected to comprise 15.4% of total industrial demand through 2026. This growth is partly driven by preemptive inventory buildup in anticipation of shifting trade conditions and supply chain challenges. JLL also reported increased interest from manufacturers seeking to relocate production closer to end consumers—a move that reflects nearshoring trends and the desire to reduce transportation costs.

Furthermore, the demand for build-to-suit properties has surged over 117% since 2018, emphasizing a strategic pivot toward long-term cost management, operational stability, and asset appreciation. This trend shows that companies are increasingly focused on customization and control over their warehouse and distribution infrastructure to ensure resilience in the face of market volatility.

Overall Slowdown in Mega Warehouse Leasing

Despite the strong performance from logistics-oriented tenants, JLL’s overall data revealed a 10.9% year-over-year decline in total industrial space demand. Macroeconomic uncertainties have slowed decision-making, with tenants now taking an average of 11 months to finalize lease commitments—up from just 3.5 months during the pandemic period.

CBRE’s findings echoed this trend, observing a broad weakening in demand. Total leasing activity for mega warehouses fell by more than 50% in the first half of 2025. The number of signed leases decreased by 58% year-over-year, totaling only 13 leases, while the total new space leased dropped by 55%, amounting to 15.6 million square feet. These figures suggest that while logistics and 3PL firms continue to expand, overall market confidence remains tempered by inflation, trade instability, and cautious corporate investment strategies.

Conclusion: Logistics Providers Take the Lead Amid Shifting Market Dynamics

The latest findings from CBRE and JLL paint a clear picture of a changing industrial real estate landscape. While e-commerce and retail sectors have pulled back, third-party logistics and manufacturing-driven tenants are seizing the opportunity to secure prime space. As global trade conditions remain uncertain, logistics providers are proving to be the most adaptive and forward-thinking players in the market. Their continued expansion underscores a strategic shift toward resilience, flexibility, and proximity to key markets—factors that will likely shape the next phase of industrial real estate growth through 2026 and beyond.

Stay Ahead in the Evolving Logistics Landscape

As the industrial and logistics sectors continue to transform—with 3PLs leading the way and new trends reshaping how supply chains operate—staying informed is key to staying competitive. At Labworks USA, we help keep trucking and logistics professionals equipped not only with industry updates but also with the compliance tools they need to operate confidently.

If you’re a truck driver or fleet operator seeking guidance on DOT drug and alcohol testing, our friendly team at Labworks USA DOT Consortium is here to assist. We’ll ensure you remain fully compliant with FMCSA Clearinghouse regulations and random testing requirements—so you can focus on what matters most: keeping your business moving efficiently in today’s fast-changing logistics environment.

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