At the same time, Chinese logistics giants are ramping up their overseas warehouse footprint, occupying more storage space across the U.S.

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According to Prologis, the world’s largest industrial real estate operator, as of the third quarter of this year, Chinese third-party logistics (3PL) operators and e-commerce companies accounted for 20% of the net leasing of new warehouse space in the U.S. This share has risen sharply in recent years.

Chris Caton, Managing Director of Global Strategy and Analytics at Prologis, said that Prologis has long leased space to Chinese retailers and logistics operators, but this year has seen a marked increase in demand.

Industrial real estate experts note that some of these leasing companies are headquartered in China, while others are based in the U.S. or other regions, primarily handling logistics from China to the U.S. Many logistics operators are concentrating their warehouse rentals in major U.S. logistics markets, including Southern California, New Jersey, and near the Port of Savannah, Georgia.

According to real estate services firm JLL, Chinese logistics companies leased 5.6 million square feet of warehouse space in New Jersey by the third quarter, nearly triple their total lease space in the region for all of 2023.

Chinese e-commerce giants Alibaba and JD.com are expanding their U.S. warehousing operations. Meanwhile, third-party logistics companies such as GOODCANG, 4PX, Western Post, and Lecangs are also increasing their U.S. warehouse rentals.

For example, over the past year, GOODCANG expanded its European and American warehouse network, opening 85,000 square meters of new warehouses in Savannah and Dallas. As its warehouse network continues to grow, GOODCANG’s total storage space in North America reached 950,000 square meters by July, with a global footprint exceeding 1.6 million square meters (about 17 million square feet), moving closer to its "second million-square-meter" milestone.

By November, 4PX’s U.S. warehouse network had grown to over 270,000 square meters, with coverage across major U.S. regions such as the East Coast, West Coast, South, and Southeast. In March, Western Post launched a 310,000-square-foot warehouse (WPNJ9) to enhance its East Coast warehouse coverage. In September, Western Post officially opened its first million-square-foot overseas warehouse (WPPA2), marking the beginning of its "million-square-foot warehouse" era.

In February, Lecangs announced the opening of a 660,000-square-foot mega warehouse in New Jersey. By July, Lecangs expanded again, adding a 500,000-square-foot warehouse in South Carolina. According to financial reports, Lecangs added more than 150,000 square meters of storage space in the first half of the year. Currently, Lecangs operates warehouses globally with a total area of about 6.68 million square feet.

Prologis' Caton noted that some Chinese logistics providers are setting up warehouses to support the rapid growth of e-commerce giants like SHEIN and TEMU. These platforms have gained popularity with U.S. consumers by offering ultra-low-priced clothing and household goods. Some of their business segments are growing at rates of 25% to 50% annually. When an online business scales from $5 billion to $10 billion or even $20 billion, a robust supply chain is essential for support.

Previously, SHEIN and TEMU primarily relied on air freight, shipping most orders directly from Asian suppliers to U.S. consumers, with delivery times exceeding a week—much longer than competitors like Amazon, Walmart, and Target. Now, both SHEIN and TEMU are accelerating the construction of their U.S. supply chains to speed up order fulfillment.

For example, SHEIN has opened warehouses in Indiana and California and is collaborating with third-party logistics providers across the U.S. TEMU, on the other hand, has been expanding its U.S. business by introducing American brands and sellers to its low-cost marketplace, many of whom already hold inventory in the U.S. Currently, third-party sellers on the TEMU platform use various logistics service providers.

Industry experts note that after the surge in warehousing demand during the pandemic, the overall U.S. warehouse market has contracted. Now, renewed leasing activity has become a bright spot in the U.S. warehouse market. According to real estate services firm Cushman & Wakefield, the vacancy rate for industrial real estate rose to 6.4% in the third quarter, up from 4.6% a year earlier—the highest quarterly level since the end of 2014.

As Chinese e-commerce platforms and logistics companies ramp up their investments in the U.S., regulatory reforms are brewing in the U.S., which could make shipping directly from China to the U.S. more complicated and costly.

In September, the U.S. government announced plans to limit the use of the "de minimis rule," a tariff policy that allows parcels valued at less than $800 to enter the U.S. without tariffs or customs inspections. Chinese e-commerce sellers have long used this rule to ship goods to American customers.

Jason Tolliver, head of logistics and industrial real estate at Cushman & Wakefield, said that some Chinese companies are increasing their U.S. inventories to prepare for potential additional tariffs on Chinese-made products. Regardless of the outcome of the U.S. presidential election, tariffs will likely be part of future policy changes, especially those targeting China.

In the broader context of global trade, the overseas warehouse industry is undergoing profound and exciting changes. The rapid rise of Chinese e-commerce platforms globally has become a powerful engine driving the development of Chinese overseas warehouses. These warehouses are no longer just simple logistics nodes; they are multi-functional commercial complexes that integrate storage, distribution, after-sales service, and more, serving as critical links in global supply chains and industrial chains.

As e-commerce platforms accelerate the construction of supply chains in the U.S. and leading logistics companies expand their warehouse networks, the overseas warehouse industry is set for a new wave of growth. However, amidst these industry changes, companies must not only see the opportunities but also recognize the risks. How to leverage short-term explosive growth for positive accumulation and long-term sustainable development requires deep thought.

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Public Account: Cross-border E-commerce Logistics Baixiaosheng