Snapshots

Demand from 3PL users stabilizing to pre-COVID levels

June 27, 2023

Contributors:

Excess inventory from supply chain disruptions and the ability to efficiently manage procurement and fulfillment activities for their end users enabled demand from 3PL users to increase by 36.1% from 2020 to 2022.

However, the recent slow-down in e-commerce leasing, economic uncertainty, and less favorable market conditions softened demand from 3PL users towards the tail end of 2022. Consumers are being more cautious with their spending habits, and in turn companies are reducing their inventories, resulting in a shift in demand and logistical needs.

Despite a decrease in leasing momentum the outlook for 3PL’s remains optimistic. Demand from the industry is expected to normalize to pre-COVID levels, but not fall below the initial threshold. Future disruptors and growth drivers for the industry include autonomous and electric vehicles as well as new technology and drones inside the box.

Law firm leasing is exceeding pre-pandemic levels

Positive leasing momentum in recent quarters has driven gross U.S. office leasing activity to 75% of pre-pandemic levels.

Conversions are helping offset the rise in vacancy

Conversions are mitigating the rise in vacancy

Office demand continues steady path of recovery

Office requirements trending upwards for four consecutive quarters