The rapid growth of e-commerce has created a proliferation of warehouses of one million square feet or larger, with the Delaware Valley region having the largest concentration of the massive structures.
The new report comes from commercial real estate broker CBRE Group, Inc.
One hundred seventeen such facilities were built across the U.S. from 2010 to 2016 for a total of 141.2 million square feet, an increase from the 99 facilities built between 2003 and 2009, according to CBRE.
An older distribution center in Delaware is Wal Mart’s 1.2 million site in Smyrna.
Delaware accounted for about five percent of the total space between 2010 and 2016, thanks to the one million-square-foot Amazon Fulfillment Center in Middletown. Northern Delaware is limited in its ability to attract the mega-warehouses, due to a lack of developable land.
Future outside possibilities for the state are the former Claymont Steel site, which is now being razed for commercial development or the former GM Boxwood plant location. However, both sites are being eyed for more varied mixed-use commercial development.
Delaware and other states would like to see manufacturing as part of the mix for reasons that include higher wages and more supplier and support jobs.
Northern Delaware is limited in its ability to attract the mega-warehouses, due to a lack of developable land. Southern New Jersey and the Lancaster area have more land for the big footprints of the centers.
Top Markets For 1 Million-Sq.-Ft. Warehouses Built 2010-2016
| Rank | Market | Number of Buildings | Total Sq. Ft. (millions) |
| 1 | Philadelphia | 16 | 19.7 |
| 2 | Inland Empire | 13 | 15.4 |
| 3 | Dallas/Fort Worth | 13 | 14.7 |
| 4 | Atlanta | 12 | 13.8 |
| 5 | Chicago | 9 | 11.7 |
| 6 | Memphis | 3 | 4.1 |
| 7 | Columbus | 3 | 3.4 |
| 8 | Cincinnati | 2 | 3.3 |
| 9 | Indianapolis | 2 | 2.2 |
| 10 | Phoenix | 1 | 1.2 |
Looking ahead, the busiest markets for on-going construction of 1 million square foot warehouses are led by the Inland Empire, Chicago, the Delaware Valley (Philadelphia MSA) and Atlanta. Across the 10 busiest U.S. markets for this type of construction, 29 such facilities are underway.
