The Southeast Scales Up

The New Center of Big-Box Industrial Activity 

Large-format industrial demand is rebounding, even as activity remains below its pandemic-era peak. For occupiers with requirements exceeding 700,000 square feet, the Southeast remains the most consistently viable region in the country. 

Since 2020, one out of every four big-box leases in the U.S. has occurred here, reflecting the region’s structural advantages in scale, connectivity, and cost. 

Key Takeaways 

• The Southeast captures a disproportionate share of large-scale demand. It has led the nation in four of the past five years, driven by 3PL, manufacturing, and retailer/wholesaler users. 
  
  
• Build-to-suit now defines delivery at scale. Nearly half of all U.S. big-box BTS projects developed since 2020 or underway are located in the Southeast, as occupiers pursue facilities aligned with automation and operational requirements. 
  
  
• Ownership is rising among the largest users. In 2025, user acquisitions accelerated—particularly across the Southeast and Midwest—signaling a growing preference for control over long-term occupancy costs. 
  
  
• Momentum is returning nationally. As highlighted in Jason Price’s recent U.S. report, demand rose in the second half of 2025, propelled by deals over 500,000 sf. The number of transactions in this segment increased 32% year-over-year, driving 113 msf of absorption and signaling renewed large-format engagement. 

Read The Southeast Scales Up External Link for the full analysis.