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​​​​​United States Industrial Outlook | 2017

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.

Here are three things to keep an eye on in the coming months:

For a closer look at your market(s) of interest, select your desired reports:



Click through the tabs below to compare market performance across key categories.

Inventory (s.f.)

Total inventory tops 12.5 b.s.f. led by Chicago, Los Angeles and Philadelphia/Harrisburg.

Market Inventory (s.f.)
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Rental rates ($)

U.S. average asking rents jumped to $5.25 per square foot. Northern New Jersey saw the highest year-over-year rent growth, followed by San Francisco Mid-Peninsula, Seattle and Inland Empire.

Market Rental rates ($)
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YTD net absorption (s.f.)

Annual net absorption grew 11.9% to 58.4 m.s.f. Philadelphia, Dallas and Atlanta led absorption, contributing 34% to the U.S. total alone.

Market YTD net absorption (s.f.)
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Total vacancy (%)

Vacancy rates fell in nearly three-quarters of U.S. markets, dropping overall U.S. vacancy to 5.3%. California continues to have the tightest markets in the country, led by Los Angeles (0.9%), East Bay (1.2%) and Orange County (1.5%).

Market Total vacancy (%)
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Under construction (s.f.)

206.7 m.s.f. is currently under construction, and an estimated 247.2 m.s.f. is expected to deliver through year end.

Market Under construction (s.f.)
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United States industrial property clock

View interactive version with additional market details.

JLL Industrial Outlook clock (image)

Source: JLL



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