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United States

Report | United States Industrial Outlook - Q1 2017

Summary

With already record-high rents, price tags for industrial space continue to soar, and vacancy is now at a 17-year low.

2017 is expected to stay landlord-favorable in 88 percent of the markets we track. Most existing spaces are leased out and new deliveries are hitting the market at steady pre-lease rates. Nationwide, there’s simply little to no industrial product available.

The overall construction pipeline continues to grow, though net absorption is still outpacing new deliveries. The typical first-quarter slowdown produced fewer deliveries this winter, but we expect more activity to close out the year. And as existing top-tier submarkets start seeing a lack of space to build new product, submarkets traditionally not considered for speculative development have potential to be tapped into.

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