A demand in fulfillment centers, which was first overwhelmingly apparent during the Covid 19 months, is expected to continue in the immediate years ahead, only at a somewhat reduced pace.
According to a new report just issued by the real estate analysis firm Yardi Matrix, the national supply of such centers has seen a decrease in the last year but is expected to once again be on the upside between now and 2029.
Currently, notes the firm’s Industrial National Report, there is just under 380 million square feet of fulfillment or industrial space under construction nationally, with cities throughout the Sunbelt seeing the most activity.
Leading the way by far is Dallas with 29.6 million square feet being built; followed by Houston at 21.9 million square feet; Phoenix at 19.9 million square feet; and Atlanta with 10.2 million square feet.
Other Sunbelt projects include Denver with 8.2 million square feet; Charlotte with 7.7 million square feet; and Los Angeles with 5.2 million square feet.
The demand for such facilities, in fact, appears in every way likely to remain constant well into the next decade, and the primary reason for it is due to how e-commerce has changed the way Americans spend money.
“Consumer expectations for the speed of online deliveries have shifted in recent year,” says the report, “with next-day delivery becoming the norm and retailers competing to increase the number of products they can deliver the same day.”
In response, online giant Amazon just over two years ago substantially restructured its distribution network, moving from a “national model to eight regional networks that are mostly self-contained.”
To this end, Amazon has also made it possible to reduce delivery times for the simple reason that the “majority of orders are fulfilled locally, reducing the amount of cross-country shipping.”
At the same time, Walmart in both building new stores and using many of its existing facilities, has turned such properties into local fulfillment centers, with the company saying it can reach “93% of U.S. households with same-day delivery.”
Overall, new fulfillment facilities of all sizes are expected to see construction practically everywhere in the country, adds the Yardi Matrix report, noting: “Demand for smaller in-fill and last-mile facilities will remain hot as online retailers look to keep goods closer to consumers.”
March 26, 2026
By Garry Boulard
Photo courtesy of Pixabay
