August 2017   Volume 43, Number 8      


Industrial Real Estate Development Reaches 10 Year High

Development of industrial space in the U.S. is at a 10-year high. The current pace of development is showing no signs of a slowdown in the near future.

Roughly 247 million square feet of new industrial space is expected to be delivered this year. This is the most since 2007, according to real estate services firm JLL. Rents are also at record highs, while vacancies are at a 17-year low.

Construction activity is also increasing nationwide. Five metropolitan areas — Dallas, the Inland Empire east of Los Angeles, Philadelphia, Denver and Atlanta — accounted for more than half of new development starts in the first quarter. Although more supply is hitting the market, JLL expects 88 percent of the markets that it tracks to remain favorable to landlords.

JLL also noted that some tenants are starting to become more cautious. As a result, they could be surprised with more expensive rents upon the renewals of their leases. E-commerce companies and food subscription services drove leasing activity in the first quarter of 2017, according to the firm.

“The market is on fire today for industrial property owners, but in some markets it poses unique challenges for companies searching for industrial space,” said Craig Meyer, president of JLL’s Industrial group in the Americas.

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In this issue:

The 10 Fastest Growing Cities in the U.S.

3 Million First-time Homebuyers Shut Out of Home Market in Past Decade

America’s Hottest Real Estate Markets: May 2017

Home Prices Are Increasing, But Mortgages Are Still Cheap

Fed Announces Third Rate Hike in 7 Months

Industrial Real Estate Development Reaches 10 Year High

Real Estate Companies Are Moving to the Cloud

Mortgage Applications Down 12 Percent Since 2016

Why More Millennials Are Finally Buying Real Estate

Why More Real Estate Firms Are Now Offering Mortgages


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