In recent months, logistics companies located in Asia have significantly increased their leasing of warehouse spaces in the United States in response to evolving trends in e-commerce, global trade, and manufacturing. These third-party logistics companies, often referred to as 3PLs, play a critical role for online retailers and other businesses by providing essential services that include storing, packaging, and transporting products.
Research conducted by leading real estate firm Cushman & Wakefield has demonstrated that leasing activities by Asian logistics firms more than doubled in prominent U.S. markets such as New Jersey and Los Angeles last year, marking a considerable rise compared to 2023. Despite a general decline in demand for warehouses post the COVID-19 pandemic—during which online shopping experienced a remarkable growth—this surge in activity by Asian companies has offered a boost to the industry, as noted by real estate company CBRE Group in a report published in June 2024.
The data provided by logistics real estate company Prologis further estimates that by the third quarter of 2024, China-based e-commerce companies and logistics providers were responsible for approximately 20% of new warehouse leases in the United States. The CBRE report suggests that some of these companies resorted to leasing warehouses to mitigate the impact of potential tariffs on imported goods, by maintaining more inventories domestically. In early February, U.S. President Donald Trump imposed an additional 10% tariff on certain goods imported from China, with plans to increase it to 20%.
In a discussion on warehouse leasing trends, Jason Tolliver, co-leader of Cushman & Wakefield’s Americas logistics and industrial services practice, provided insights. He noted that the presence of Asian-based 3PLs has become increasingly significant in the past two years. This growth is driven by the complexities of the current market, as well as the rising demand for third-party logistics providers who possess the requisite scale and expertise to handle these new challenges.
Tolliver highlighted that the rise in leasing by Asia-based 3PLs is closely linked to cross-border e-commerce activities. The de minimis exemption, which permits online orders in the U.S. to be directly shipped from storage facilities in Asia, has been a major factor. Additionally, a trend toward regionalization is emerging, driven by the expansion of global trade and manufacturing.
The speed at which companies operating under the de minimis model can deliver directly to consumers is a crucial benefit of having warehouses in the U.S. Additionally, reverse logistics—processing returns and reselling products within the U.S.—are important aspects. Although the scale of Asian-based 3PLs has historically been smaller compared to other e-commerce entities, their influence on leasing activity has been substantial, especially as other e-commerce players have scaled back while Asian operators have expanded aggressively.
The position of these companies in the overall leasing landscape varies across different markets, but 3PLs, both domestic and international, continue to be primary drivers of leasing activity in logistics and industrial spaces throughout the Americas. They are projected to maintain their status as the leading lessors, followed by the manufacturing sector, with retailers and wholesalers lagging behind.
Despite the tariff considerations by President Donald Trump on small-value packages from China, there have been no notable shifts from companies in terms of logistical changes due to these policies. Commercial real estate tends not to react as swiftly as the stock market. Retailers and wholesalers are taking potential future changes into account but are not yet executing substantial modifications to their networks due to a lack of clear policy direction.
