2026 Sees Jump in Demand for Large Warehouses Driven by Outsourced Logistics

After several years of uncertainty and excess capacity, the industrial real estate market is showing clear signs of renewed momentum. Demand for large-scale warehouse space is accelerating as businesses rethink how and where they store, move, and fulfill goods in a rapidly evolving supply chain landscape. The Wall Street Journal reports that large warehouses are making a comeback in 2026. Companies signed 146 leases for mega-warehouses in 2025, up 31% from 2024, and is the highest level since 2022. With steady growth in e-commerce sales and shifting global trade dynamics, companies are making strategic moves to secure commercial space, both for current needs and long-term growth.

This resurgence is not happening in a vacuum. Several key trends are converging to fuel demand for larger warehouse space across the country.

Top 3 Factors Driving Demand for Large Warehouses

According to the Wall Street Journal, increase in demand for big warehouse is being driven by three forces reshaping the modern supply chain:

1. Third-Party Logistics Providers Signing Major New Leases

In 2025, 3PLs were the group with the largest industrial real estate market transactions. Third party logistics companies accounted for 44 of the top 100 industrial leases in 2025, a 57% jump from the 28 leases they signed in 2024, according to a Monday report from CBRE Group.

This trend matches the growing number of major corporations who are choosing to outsource their supply chain operations as e-commerce activity grows so they can focus on their core business while improving operational efficiency and scaling more strategically. Businesses are seeing the value in the outsourcing of logistics in a wide variety of ways as they gain access to:

1. D2C, B2B wholesale, and online seller logistics expertise around routing and compliance.
2. Advanced software that tracks shipments, manages inventory, and forecasts demand more accurately in an unpredictable trade environment.
3. Scalability without investing in additional fullfillment warehouse space, labor, or equipment, especially during peak seasons.
4. Faster, more reliable shipping with same-day shipping fulfillment.
5. Better customer experience with shipping updates and returns support.
6. Geographic reach and market expansion without further investment (when partnering with a 3PL that has strategically located fulfillment centers).
7. Reduced shipping rates and more predictable, usage-based operations costs.

2. Reshoring/Nearshoring from Overseas Suppliers

E-commerce businesses have been adjusting to a new reality since 2025 with a global trade dynamics shift involving tariff uncertainty, tensions with long-standing international trading partners, and the sudden end of the de minimis exemption for low-priced goods.

As a result, many merchants are shifting from overseas suppliers to domestic or nearshore sources to reduce dependence on volatile international markets and limit their exposure to tariffs, duties, and trade restrictions on imported goods.

Companies are building up domestic inventory buffers and expanding their regional distribution networks to maintain speed and reliability. This shift is driving increased demand for large warehouse space in the U.S. as businesses move more inventory closer to end consumers.

3. Decreased Vacancy Rates

Vacancy rates for mega-warehouses have fallen from 11% (Q4 2024) to 9.5% (Q4 2025) as new construction slows and fewer large facilities are coming online. Real estate executives say the market is stabilizing much faster than anticipated and it has led rental rates to increase as available space is leased.

This tightening supply environment is making it more difficult for companies to secure large, strategically located facilities, which is increasing urgency around long-term leasing decisions and expansion planning.

In summary, demand for large-scale warehouse space is accelerating as businesses respond to shifting supply chain pressures. These trends are reshaping how companies manage inventory and fulfillment, and they are driving a clear shift toward larger, more strategically located facilities. As competition for space increases, 3PLs can give businesses access to strategically located warehouses with full-service order fulfillment without investing in additional infrastructure.

Building for Your Future with G10

Since our establishment in 2009, G10 Fulfillment has grown rapidly, starting from a 10,000-square-foot airplane hangar to now operating in seven locations across the United States. While our original facility holds a special place in our history, our current and future locations demonstrate our dedication to meeting the changing needs of our customers.

This Spring, G10 announced that we are officially expanding our Midwest footprint with a new 315,000-square-foot warehouse in Kenosha, Wisconsin! The warehouse is currently under construction and is expected to be fully operational in the coming months. With capacity to fulfill 10,000 orders per day up to 25,000 orders in peak sales times, this new 315,000 sq. foot warehouse is a direct investment in the scalability and flexibility our partners need to grow without friction.

In this video, CEO Mark Becker talks about G10’s exciting new warehouse expansion, sharing "We believe in building ahead of demand, not reacting to it." Ultimately, this new warehouse means:

• Increased capacity: Support for higher volumes and larger brands.
• Operational power: Enhanced infrastructure for complex, high-performance fulfillment.
• Strategic location: A strengthened Midwest hub to keep transit times low and efficiency high.

If you are looking for a fulfillment partner that builds for your future, we would love to meet with you to discuss your needs and show you what we are building in Kenosha and around the country. Request a quote today.