Despite record supply and economic uncertainty, the distribution and warehousing sector remains resilient. While the pandemic-driven e-commerce boom is well in the rear-view, distribution still dominated the largest industrial projects delivered so far in 2024. Plus, signs of renewed activity are also evident as major logistics players lease space again with an accompanying rise in distribution support and warehousing jobs.

Moreover, local factors — like population growth and robust logistical infrastructure — are further driving development across U.S. distribution hubs. So, to identify the most active areas, we selected the 100 largest metropolitan statistical areas (MSAs) by total distribution and warehousing square footage. The MSAs were then evaluated based on three sets of criteria: distribution and warehouse space inventory; distribution indicators and costs; and logistics infrastructure. (Read our Methodology section for a full breakdown of the metrics). We then highlighted the top 20 performers for their strengths in supporting distribution capabilities.

 

1. Dallas MSA

Accumulating a total of 62.2 points — seven points ahead of its closest competitor — Dallas-Fort Worth cemented its position as the leading metro for distribution and warehousing in the U.S. Specifically, the metro scored highest in three key metrics and was runner-up in a fourth with its dominance largely driven by its inventory size and rapid growth. For instance, between 2019 and 2023, Dallas-Fort Worth added approximately 110 million square feet of new distribution and warehouse space, which was more than any other metro during this period. This expansion in development boosted the metro’s total distribution and warehousing space to more than 613 million square feet, thereby securing its top ranking for overall inventory.

Situated at the crossroads of major interstate highways, the metro boasts the fifth-highest number of roads in the top 20 that are suitable for logistics with 3,449 miles of heavy roads. Its central location also allows for efficient supply chains and provides businesses the flexibility to pivot between West and East coast ports as needed. This geographical advantage is further enhanced by robust air freight capabilities centered around the Dallas-Fort Worth International Airport — one of 17 airports in the metro (the highest number among all entries in the study) — and two major inland ports.

These factors — combined with 12.3 million square feet currently under construction for the second-largest pipeline of metros analyzed — indicate Dallas’ potential to retain its top spot in distribution space well into the future. Additionally, projections suggest that, by the 2030s, Dallas could become the third-largest metro area in the U.S., further driving demand for distribution and warehousing space.

2. Phoenix MSA

In the last five years, the metro has seen a 44% increase in its distribution and warehouse space stock to elevate it to the eighth-largest total inventory in the study. Namely, from 2019 to 2023, the region added 58.9 million square feet of distribution and warehouse space to rank fourth in percentage growth and fifth in total square footage added in the top 20.

Several factors have driven this expansion. First, the influx of hundreds of thousands of new residents has spurred demand and expanded the labor pool, attracting businesses and investments. Additionally, Phoenix’s location (only a six-hour drive from the ports of Los Angeles and Long Beach) allows goods to reach distribution centers in the West Valley on the same day. Of course, cost advantages also play a significant role with the average annual asking rent in Phoenix at $14.90 per square foot, as compared to $18.40 in Los Angeles.

3. Savannah MSA

Home to the nation’s third-busiest container gateway and one of its fastest-growing ports, Savannah, Ga., has seen its distribution profile grow at an exceptional rate in the last five years. Accordingly, the metro has experienced a 64% increase in distribution and warehouse space from 2019 to 2023 — the highest percentage growth among metros analyzed during this period. This development is driven by ongoing investments aimed at increasing the port’s capacity for larger container ships and additional cargo, along with broader geopolitical factors that have favored East Coast ports.

Furthermore, Savannah now boasts the highest share of new, more efficient distribution and modern warehouse space among its total inventory with 89% of its total stock delivered since 2000. Additionally, 83% of Savannah’s total industrial space is dedicated to distribution and warehousing — the second-highest share among the top 20 metros.

Notably, the growth trajectory for Savannah is set to continue as the metro currently has the sixth-largest amount of distribution and warehouse space under construction in the study, totaling approximately 7.1 million square feet. Similarly, port infrastructure investments are also ongoing with more than $4.5 billion in planned projects throughout the next decade. A key initiative is the Mason Mega Rail Terminal, which aims to enhance the port’s intermodal capacity and connectivity — an area where Savannah ranked fifth in the top 20 metros in rail mileage.

4. Riverside MSA

Throughout the last two decades, the Riverside-San Bernardino-Ontario, Calif., metro area — known as the Inland Empire — has evolved into a major hub for industrial real estate largely due to its growth in distribution centers and warehousing. With more than 80% of its industrial space dedicated to these uses, the metro has established itself as a sector leader. And, boasting more than 500 million square feet, Riverside holds the second-largest industrial inventory among the metros analyzed: From 2019 to 2023, the region expanded its distribution and warehouse space by 84 million square feet to position it just behind Dallas for total added square footage during this period.

This expansion has been largely driven by spillover demand from the neighboring Los Angeles metro, where industrial space has become increasingly scarce. As a result, Riverside-San Bernardino-Ontario has seen the fifth-highest amount of new industrial stock developed since 2000. The metro’s infrastructure, including 16 airports (surpassing even Los Angeles), has further supported this growth by accommodating the rising demand for same- and next-day delivery services.

However, the metro’s rapid success has brought challenges. For example, the development has led to regulatory resistance and local opposition, particularly regarding the development of distribution centers near residential areas and the effects of heavy truck traffic on neighborhoods. So, looking ahead, the future of industrial big-box developments in the Inland Empire may be influenced by advancements in building design, sustainability initiatives and the adoption of electric vehicle (EV) transportation to address community concerns while continuing to support consumer needs.

5. Chicago MSA

With a rich history and a total of 454 million square feet of distribution and warehouse space, Chicago secured its spot in the top five of our ranking mainly due to its extensive inventory and impressive supply-chain-friendly infrastructure. Here, the metro boasts 16,000 distribution-related businesses — the highest concentration in the country — and has the study’s third-largest local distribution-related labor force. Chicago’s roadway and railway networks are also extensive, ranking third and fourth, respectively, among the top 20 and further reinforcing its position as a critical logistics hub.

Yet, even as one of the largest in total warehouse and distribution space, Chicago has nevertheless seen a substantial addition of such stock in recent years: Between 2019 and 2023, the metro added nearly 61 million square feet of new space, marking the fourth-highest increase among metros analyzed. This growth was driven by sustained demand, particularly in the western and southwestern suburbs. At the same time, major projects at the CenterPoint Intermodal Center in Joliet — the largest inland port in the country — have added 4.7 million square feet across four buildings between 2019 and 2022.

Looking ahead, Chicago’s industrial pipeline remains strong with more than 7 million square feet of space currently under construction — the largest among metros in the Midwest region. Granted, like other densely populated urban centers, the challenge lies in balancing the need for last-mile delivery close to the population with the availability of land. This has led to the exploration of vertical warehouses, which is a concept long-used in east Asia. To that end, Chicago’s first multi-story distribution center, which will rise five stories high, is currently under construction, marking a new chapter in the metro’s ongoing adaptation to its growing logistics demands.

6. Houston MSA

Houston’s dominance in national export value rankings (it’s held the top spot or close to it in recent years) has been a major driver of its expansion in distribution and warehousing space. More precisely, in the last five years, the metro has added 72.3 million square feet — the third-largest increase among the top 20 metros. The growth continues with 7.3 million square feet currently under construction to place Houston fifth in ongoing industrial development. This sustained expansion reflects its critical role in national and global trade.

Supporting this rapid expansion, Houston has several vital infrastructure projects in the works. One standout is Project 11, a $1 billion initiative to deepen and widen the Houston Ship Channel by 2026. This aligns perfectly with the Gulf Coast port’s recent surge in container traffic, which saw double-digit growth from 2022 to 2023. Despite this rapid pace of development, Houston remains an attractive option for businesses looking to expand their distribution operations as it offers the second-most affordable industrial rents among the top 20 U.S. metros at $9.80 per square foot

7. New York MSA

With access to more than 20 million residents, the demand for distribution space in this metro is unsurprisingly high, thereby positioning it as a key player in the sector. Specifically, the area currently boasts 379 million square feet of distribution and warehouse facilities — the fifth-largest inventory among the metros analyzed. Supporting this vast infrastructure is a highly skilled workforce of more than 600,000 individuals employed in distribution-related roles, which is the largest of its kind in the study. What’s more, these workers are distributed across nearly 13,000 businesses, which highlights the metro’s scale and capacity for handling complex logistics operations.

Here, the Port of New York and New Jersey (one of the leading cargo hubs in the U.S.) naturally fuels this demand for space. And, complementing the port’s activity is an expansive transportation network that includes multiple international airports and the highest heavy roadway mileage among all of the metros on our list. Key routes alone — like the New Jersey Turnpike and Interstate 78 —handle 120,000 commercial trucks daily, which facilitate the movement of goods on a massive scale. Yet, the region’s high population density and limited land availability present unique challenges. So, to overcome these constraints, the metro has embraced solutions such as multi-story industrial projects. A prime example is The Borden Complex in Queens — a five-story, 840,000-square-foot facility with truck courts — which showcases New York’s ability to adapt to spatial limitations and places it alongside Chicago in the growing vertical logistics niche.

8. Atlanta MSA

A natural contender as a primary distribution hotspot, Atlanta stands out as the major population center of the Southeast and benefits from its proximity to Georgia ports, such as Savannah. This advantageous location has positioned the metro with the fifth-largest inventory in the study, encompassing approximately 368 million square feet dedicated to distribution and warehousing. In particular, between 2019 and 2023, this capacity was further expanded by the addition of 35.8 million square feet of new space.

It’s worth noting that much of Atlanta’s growth in the warehousing and distribution sectors can be traced back to the industrial boom of the 1990s, which established the foundation for its extensive network of distribution-related businesses and staffing. As a result, today, Atlanta ranks fifth in the top 20 for both categories. Moreover, its industrial landscape is enhanced by transportation connections that include some of the highest numbers of miles of highways and rail among the metros analyzed. Plus, the metro features 16 airports to tie for the second-highest number in the rankings. Among them is Hartsfield-Jackson Airport, which is renowned for its cargo traffic.

9. Indianapolis MSA

Known as the “Crossroads of America,” Indianapolis earned its status as a major distribution hub due to its extensive transportation infrastructure and cost-effective business environment. For example, the metro boasts 110 miles of rail — the second-highest among the top 20 U.S. metropolitan areas to surpass even Chicago, which is often recognized as one of the busiest rail hubs in the country. This robust rail network, combined with Indianapolis’ efficient roadways, gives the metro a significant competitive edge. And, the metro’s road network experiences the lightest traffic among the top 20 metros, thereby ensuring smoother and more reliable transportation for goods.

Adding to its logistical strength, Indianapolis is also home to the world’s second-largest FedEx air hub. Here, FedEx’s $1.5 billion investment into the city’s international airport has elevated the airport to rank among the top U.S. cargo hubs, underpinning the metro’s role as a leading player in logistics. In addition to these significant advantages, Indianapolis is a highly affordable market for businesses: Industrial rents in the metro are among the lowest in the top 20, allowing companies to benefit from both competitive costs and a central location. Furthermore, in the last five years, the metro’s distribution and warehouse inventory has expanded significantly: It’s now approaching 200 million square feet, making it one of the largest in the Midwest and solidifying its position as a prime destination for logistics operations.

10. Las Vegas MSA

In recent years, Las Vegas has experienced accelerated growth in its distribution and warehousing sector: Between 2019 and 2023, the metro’s distribution inventory expanded by 43.2%, ranking it the fifth-fastest in growth among the top 20 metros. As you might expect, this increase has contributed to a modern shift in its industrial landscape with a notable portion of its distribution and warehouse space constructed since 2000.

Currently, Las Vegas has 6.2 million square feet of distribution and warehouse space under construction, placing it eighth nationally and third among Western metros (behind only Phoenix and the Inland Empire). That said, although its existing staffing and infrastructure have managed to meet current demand, the metro’s rapid growth — paired with its smaller size — has led to lower rankings in areas such as distribution-support workforce levels. However, the region is proactively addressing this challenge. For instance, the College of Southern Nevada (CSN) is investing $376,000 to launch a logistics and operations training program that features state-of-the-art labs and certified instructors. This initiative, which is based at its North Las Vegas campus and the Westside Education and Training Center, aims to cultivate a skilled workforce capable of supporting the metro’s expanding logistics needs.

11. Charleston MSA

Returning to the South, Charleston, N.C., stands out as a thriving and expanding seaport metro. Here, the Charleston seaport marked a significant milestone in 2021 with the opening of the Hugh K. Leatherman Terminal, which was the first new container terminal in the U.S. in more than a decade. Located along the Cooper River in North Charleston, this terminal represents a substantial investment of around $985 million. It also features advanced equipment — including the tallest ship-to-shore cranes on the East Coast — specifically designed to handle larger container ships.

What’s more, throughout the last five years, Charleston has seen a 40% increase in distribution and warehouse space to position itself comfortably within the upper half of the top 20 metros for growth in total inventory. And, a significant portion of this space is modern with 67.7% of the current stock built since 2000. Warehousing and distribution are also central to the metro’s industrial make-up, comprising 74% of the total industrial space. Despite this rapid expansion, Charleston remains affordable with labor costs ranking as the fourth-lowest among the top 20 metros.

12. Austin MSA

As the third-fastest-growing metro for distribution and warehousing space, Austin, Texas, grew its inventory by almost 50% in the 2019 to 2023 period. While its overall inventory is smaller than those of established Texas hubs, like Houston and Dallas, Austin stands out with a more modern distribution landscape: More than two-thirds of its stock has been built since 2000, highlighting one advantage of its later emergence as a distribution hub.

At the same time, the metro’s famed population growth has driven demand for logistics and distribution space. Even so, Austin’s relatively low distribution and logistics labor costs (ranking third-lowest among the top 20 metros) add to its attractiveness as a distribution hub. This affordability remains a key advantage, even as rising living costs (particularly in housing) are likely to place upward pressure on wages.

13. Olympia-Lacey-Tumwater MSA

In the Pacific Northwest, the Olympia-Lacey-Tumwater metro area in Washington ranks #13 on our list, driven by remarkable growth in recent years. In particular, it’s the second-fastest-growing metro by percentage among the top 20 in the last five years after witnessing a 52.7% leap in its distribution and warehouse inventory. This rapid development has made it a concentrated distribution hub with nearly 90% of its industrial space dedicated to distribution and warehousing to give the area one of the newest industrial landscapes focused on distribution.

However, while the Olympia-Lacey-Tumwater metro has seen recent growth, there’s currently minimal distribution space under construction with several projects still in the planning phase. And, like many fast-growing areas, its distribution infrastructure and workforce remain modest, which aligns with its smaller population of less than 300,000. However, being less than 60 miles from Seattle along the I-5 corridor gives it access to a much larger consumer base. This connection also points to potential continued demand for distribution space as the metro benefits from its proximity to a broader market.

14. Kansas City MSA

Kansas City, MO., has long leveraged its central location to establish itself as a major trade hub in the U.S. with commercial roots stretching back to the early 1800s. Clearly, its location provides logistical advantages by offering access to 90% of the contiguous U.S. within two days by road. What’s more, the metro’s well-developed intermodal transportation network — which includes highways, railways and the Missouri River — supports efficient distribution across multiple modes.

Here, affordability is Kansas City’s standout feature with average industrial rents at $8.20 per square foot as of August 2024 — the lowest among the top 20 metros. This affordability, driven by the availability of inexpensive land, has sparked a surge in new development. As such, in the last few years, nearly 29 million square feet of warehouse and distribution space has been added to bring the metro’s total inventory to 156 million square feet. And, an additional boost is on the way with several projects currently under construction, including the KCI 29 Logistics Park. Set to open by 2025, this key development will add a 1.55-million-square-foot distribution center, further enhancing the metro’s industrial capacity.

15. Gainesville MSA

Though Gainesville, Ga., is the smallest metro on our list with a population of just 212,700, it distinguishes itself with a remarkable share of its industrial space dedicated to logistics and distribution: Approximately 83.4% of its total industrial stock is utilized for these purposes — the highest proportion among the top 20 metros. This high concentration is influenced by its location just 50 miles from Atlanta along the I-85 corridor, which enables it to meet the distribution space demands of a much larger metro, while also benefiting from a direct supply chain link to the bustling Port of Savannah.

To sustain this industrial growth, Gainesville is developing the 1,300-acre Gainesville 85 Business Park that’s situated on city-owned land at the metro’s eastern gateway and expected to open this year. Enhancing this infrastructure, a partnership between the Georgia Ports Authority and Norfolk Southern is establishing the Blue Ridge Connector inland port terminal at the nearby Gateway Industrial Centre. The 104-acre site will initially feature 9,000 feet of working track and later expand to 18,000 feet at full build-out to strengthen Gainesville’s logistics capabilities.

16. Philadelphia MSA

Neatly positioned in the heart of the Northeast, Philadelphia provides direct access to a vast consumer base of nearly 46 million people within a 200-mile radius. This advantageous location is bolstered by an extensive transportation network, including major highways like I-95 and I-76; two Class I railroads; and the Delaware River ports, which fortifies its role as a key logistics hub. Additionally, Philadelphia boasts the highest rail mileage among the top 20 metros with 114 miles of track. It also ranks fourth in highway mileage to ensure efficient distribution and supply chain operations across the densely populated region.

Philadelphia also stands out in the Northeast for its relatively affordable industrial real estate compared to the New York metro area. With average asking rents at around $11.70 per square foot annually, it offers a significant cost advantage over New York’s $21.90 per square foot. Labor costs further add to this appeal, averaging $45,500 per year in Philadelphia as compared to $51,800 in New York.

17. Ocala MSA

Ocala’s central-Florida location — positioned between cities like Miami, Atlanta, Tampa and Jacksonville — offers access to a market of around 39 million people. This prime location has drawn major distribution and logistics operations, including FedEx, Amazon, Dollar Tree and Hunt Midwest’s first industrial project in Florida. Accordingly, from 2019 to 2023, Ocala’s distribution and warehouse inventory grew by 43.4%, marking the fifth-highest increase among the top 20 metros.

The metro also has the most affordable labor costs in the top 20. Meanwhile, with a comparatively smaller workforce in the distribution and logistics fields, local institutions like Marion Technical College are developing workforce training programs tailored to the distribution and logistics sector, which helps sustain the need for qualified workers, such as diesel and aviation technicians.

18. Stockton MSA

In 1933, Stockton opened California’s first inland seaport, the Port of Stockton, which has since been vital in facilitating the movement of goods between the San Francisco Bay and the Central Valley. This early investment in logistics infrastructure laid the groundwork for Stockton’s emergence as a key distribution hub in the West. Strategically positioned at the intersection of interstates 5 and 99, the metro offers direct access to major transportation routes, which enhances its appeal for distribution and logistics operations.

Today, 76.8% of Stockton’s industrial stock is allocated to distribution and warehouse space, placing it fifth among the top 20 metros in this category. The metro has also seen substantial growth as of late with nearly one-quarter of its current distribution and warehouse stock built within the last five years. And, although California is often associated with high real estate costs, Stockton remains somewhat the exception: It ranks as the third-most cost-effective metro for industrial space in the top 20 by offering average annual asking rents of around $10 per square foot. That makes it a compelling option for businesses seeking a balance between prime location and affordability.

19. Los Angeles MSA

Los Angeles has long stood as a premier hub for distribution and warehousing, bolstered by its rich history, advantageous location and extensive infrastructure. While its dominance peaked in the 1970s and 1980s, the metro still claimed the third spot among metros analyzed for total distribution and warehouse space with 477 million square feet. That said, in recent years, growth rates have slowed due to limited land availability and a tight market, leading to the expansion of warehousing and distribution activities into the nearby Inland Empire and further afield.

Even with these shifts, LA’s decades of prominence have fostered a robust distribution support workforce numbering 485,000 — the second-highest among the top 20 metros. The metro is also home to 12,500 distribution-related companies and establishments to place it third in our study. Supporting this extensive network are approximately 5,900 miles of heavy roadways — the second-largest total in the top 20.

20. Charlotte MSA

Wrapping up the top 20, Charlotte, S.C., secured its spot by performing consistently well across various metrics, despite not particularly standing out in any single area. Even so, one of its key strengths lies in affordability: The average wage of $44.54 per hour for workers in distribution occupations in the Charlotte-Concord-Gastonia is among the most affordable in the top 20 for businesses. Additionally, the average asking rent for industrial space in Charlotte is around $11 per square foot per year, making it an attractive option for businesses seeking cost-effective locations.

Finally, Charlotte’s advantages for distribution and logistics are further supported by its connectivity via major highways and the presence of the Charlotte Douglas International Airport, which is undergoing significant expansion. This infrastructure underpins a substantial inventory of 160 million square feet of distribution and warehousing space, placing it in the upper half of the top 20 U.S. metros. Although growth has been relatively modest, Charlotte features some 5.5 million square feet of new distribution space currently under construction, which marks its strongest showing among the industrial space metrics.