The Rise of Asian Logistics Operators in U.S. Warehousing
In recent years, logistics operators based in Asia have significantly increased their presence in the U.S. warehouse leasing market. This trend is driven by shifts in e-commerce, global trade, and manufacturing practices. Third-party logistics firms (3PLs), which specialize in managing the storage, packaging, and distribution of goods for businesses, are at the forefront of this movement. By leasing warehouses in key U.S. markets such as New Jersey and Los Angeles, these Asian-based companies are strategically positioning themselves to meet the growing demands of cross-border commerce. According to data from global real estate firm Cushman & Wakefield, leasing activity by Asian logistics firms in these regions more than doubled in 2024 compared to the previous year. This surge has emerged as a bright spot for the U.S. industrial real estate sector, which experienced a slowdown in demand following the post-pandemic boom in online shopping.
Regionalization and the Role of 3PLs in the U.S. Market
The rise of Asian logistics operators in the U.S. is part of a broader trend toward regionalization in global trade and manufacturing. As supply chains become more complex, businesses are seeking localized solutions to manage their inventories and distribution networks more efficiently. 3PLs, with their expertise in managing logistics operations, are playing a critical role in this shift. Interviewed by The Associated Press, Jason Tolliver, co-leader of Cushman & Wakefield’s Americas logistics and industrial services practice, highlighted that Asian-based 3PLs tied to cross-border e-commerce have been significant drivers of leasing activity. These companies are leveraging the de minimis exemption, a policy that allows online orders to be shipped directly to U.S. consumers from storage facilities in Asia, thereby avoiding certain customs thresholds.
The Impact of Trade Policies on Warehouse Leasing
Trade policies have also influenced the surge in warehouse leasing by Asian logistics firms. In early 2024, U.S. President Donald Trump introduced additional tariffs on imports from China, which has prompted Some companies tolastname their inventory closer to U.S. consumers. By leasing warehouses in the U.S., these businesses aim to mitigate the risks associated with potential tariffs and ensure faster delivery times. Although the tariffs have created uncertainty, their impact on warehouse leasing has been limited so far. As noted by Tolliver, commercial real estate markets react more slowly to policy changes compared to financial markets, and businesses are still planning their strategies in response to the new trade dynamics.
The Competitive Landscape in U.S. Industrial Real Estate
Despite the challenges posed by trade uncertainty, Asian logistics operators are making significant strides in the U.S. industrial real estate sector. According to Prologis, a leading logistics real estate company, e-commerce and logistics providers based in China accounted for approximately 20% of new warehouse leases in the U.S. through the third quarter of 2024. This reflects the growing influence of Asian companies in the global supply chain and their efforts to expand their reach in key markets. Meanwhile, domestic 3PLs and manufacturers remain major players in the U.S. industrial real estate market, followed by retailers and wholesalers.
The Benefits of U.S.-Based Warehouses for Cross-Border E-commerce
Leasing warehouses in the U.S. offers several advantages for companies operating under the de minimis model. Key among these is speed, as U.S.-based warehouses enable faster delivery times for online orders. Additionally, these facilities support reverse logistics, allowing businesses to process returns and resell products more efficiently. For Asian-based 3PLs, which traditionally maintain smaller footprints in the U.S. compared to other e-commerce players, leasing warehouses has become a critical strategy for expanding their operations. While other e-commerce companies have scaled back their leasing activity, Asian logistics operators have aggressively pursued new opportunities, driving growth in the sector.
Looking Ahead: The Future of Asian Logistics in the U.S. Market
As global trade and manufacturing continue to evolve, the demand for warehouse space by Asian logistics operators is expected to remain strong. According to Cushman & Wakefield, 3PLs, both domestic and foreign, will remain the most significant lessees of logistics and industrial space in the Americas in the foreseeable future. While trade policies and economic uncertainty may pose challenges, the trend toward regionalization and the growing complexity of supply chains are likely to sustain the growth of Asian logistics firms in the U.S. market. As these companies continue to expand their presence, they are reshaping the landscape of U.S. industrial real estate and playing a pivotal role in the future of global commerce.
