Demand for Large Warehouses is Back: Workforce Coordination Must Keep Up

Resurgence of Large Warehouses Highlights Workforce Management as a Primary Challenge

Demand for the largest warehouses in the United States is increasing following a period of reduced leasing activity. Organizations are signing new agreements for expansive distribution facilities as supply chains expand and emerging industries drive demand for logistics space.

A recent Wall Street Journal article, “Big Warehouses Are Back in Demand,” documents the resurgence of large warehouse leasing nationwide. Liz Young presents data from major real estate research firms and analyzes the economic factors driving renewed interest in expansive distribution facilities.

According to Cushman & Wakefield, companies signed 146 warehouse leases in the United States of more than 500,000 square feet in 2025, an increase of more than 31% from the previous year. This represents the highest level of activity since 2022. 42 of those leases were signed in the fourth quarter alone, marking the busiest quarter for these properties since the third quarter of 2022.

This surge indicates renewed investment in large-scale logistics infrastructure. However, while the real estate market emphasizes square footage and vacancy rates, a significant operational challenge is appearing.

As warehouses increase in size and complexity, effective management of large warehouse workforces becomes increasingly challenging.

Why Large Warehouses Are Returning

Multiple economic factors are prompting companies to return to large-scale distribution centers.

Manufacturers are expanding domestic production as supply chains shift closer to home. Suppliers supporting the data center construction boom are increasing storage and logistics capacity. Retailers are also increasingly relying on third-party logistics providers to manage fulfillment operations.

These trends are driving demand for large facilities capable of consolidating inventory, streamlining shipping operations, and supporting rapid distribution.

Warehouse availability for facilities larger than 500,000 square feet reached nearly 11% in late 2024, up from a pandemic-era low of 3.3% in 2022. As leasing activity accelerated and construction slowed, vacancy dropped to 9.5% by the end of 2025.

This shift demonstrates that companies are rapidly utilizing previously vacant industrial space. However, occupancy alone is insufficient; efficient operation requires addressing the increasing challenge of managing large warehouse workforces.

The Challenge of Managing Massive Warehouse Workforces

Current big warehouses may span hundreds of thousands, or even millions, of square feet. These facilities typically employ hundreds of workers across multiple shifts. As warehouse size expands, workforce management becomes more intensive.

Supervisors must coordinate workers across:

• Multiple operational zones.
• Inbound and outbound logistics.
• Different shift schedules.
• Fluctuating order volumes.

Communication also becomes more challenging. Employees located at opposite ends of a warehouse may not interact directly with supervisors or colleagues. When scheduling gaps arise, promptly replacing workers becomes difficult.

At this scale, effective large warehouse workforce management becomes essential. Without efficient coordination, even the most advanced distribution centers may experience productivity declines.

Third-Party Logistics Growth Adds More Complexity

The rapid expansion of third-party logistics providers also contributes to the resurgence of big warehouses.

Companies increasingly outsource fulfillment to specialized logistics firms to simplify operations and reduce costs. According to JLL research, many third-party logistics providers are leasing larger buildings to support growing customer demand.

These operators must manage labor across multiple client accounts within a single facility. Each client may require distinct workflows, staffing levels, and peak schedules. The complexity further increases the need for efficient workforce coordination.

Manual management of large warehouse teams becomes impractical when supervisors are required to balance staffing needs across multiple operations.

Data Center Construction Is Driving Warehouse Demand

Another surprising driver of warehouse demand comes from the expanding data center industry. Massive investments in cloud computing infrastructure require significant hardware supply chains. Companies building data centers must store electrical systems, power racks, servers, and other large equipment before installation.

Industrial research from Savills indicates that the ongoing construction boom is generating increased demand for large warehouse space throughout the United States.

Facilities supporting these supply chains often operate with complex logistics schedules. Workers must handle heavy equipment shipments, specialized materials, and strict delivery timelines.

In these environments, effective management of large warehouse workforces has a direct impact on operational success.

Why Workforce Coordination Becomes Harder as Warehouses Grow

Larger facilities offer many logistical advantages. They allow companies to consolidate operations and process larger volumes of orders. However, they also present workforce challenges that are uncommon in smaller warehouses.

For example, supervisors must quickly address staffing gaps when employees call out or when demand suddenly spikes. In smaller warehouses, managers may solve these problems quickly by speaking directly with nearby employees.

In larger warehouses, that process becomes slower and less reliable. Employees may work across multiple departments and shifts. Many workers may not even know colleagues outside their immediate teams.

Without technology to support workforce coordination, organizations struggle to fill open shifts and sustain productivity.

Consequently, large warehouse workforce management is emerging as a critical operational priority for logistics leaders.

The Impact for Warehouse Operators

The resurgence of big warehouses marks a new phase in the development of supply chain infrastructure. Organizations are investing in large distribution centers to support e-commerce growth, domestic manufacturing, and complex logistics networks. However, efficient operation of these facilities requires more than physical space alone.

Effective management necessitates systems that enable organizations to coordinate large warehouse teams, respond promptly to labor shortages, and maintain operational continuity.

As warehouses expand, workforce coordination becomes equally important as inventory management and transportation planning. Organizations that invest in advanced workforce systems will gain a distinct operational advantage.

How ShiftSwap™ Helps Simplify Workforce Management

As warehouse size increases, the complexity of managing large warehouse workforces intensifies. ShiftSwap™ helps organizations manage large warehouse teams more effectively by enabling faster shift coverage and better communication across the workforce.

The platform allows employees to exchange shifts efficiently while ensuring that leadership retains oversight and approval. Managers can fill open shifts rapidly without dedicating extensive time to manual schedule coordination.

The ShiftSwap™ software helps warehouses:

• Improve shift coverage across large facilities.
• Reduce scheduling gaps that slow operations.
• Increase employee flexibility and engagement.
• Decrease labor costs by matching labor to daily demand.
• Maintain operational stability during demand fluctuations.

For companies operating big warehouses, workforce coordination is becoming just as important as logistics planning. Solutions like ShiftSwap™ help organizations ensure that the workforce supporting these large facilities remains flexible, responsive, and fully staffed.

As demand for large warehouses continues to increase, organizations that excel in large warehouse workforce management will sustain efficient operations.