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Property market

-50

12-month change in total vacancy
(bps)

1.9%

12-month net absorption
(as % of inventory)

2.0%

12-month completions
(as % of inventory)

6.2%

12-month rent growth
(p.s.f.)

Investment market

$30.5

Investment sales
(H1 2018, billions of $US)

18.3%

H1 2018 investment sales growth

4.7%

Average cap rate

-15

12-month change in cap rate
(bps)

  • Demand: Scarcity of available space persistently providing upward pressure on rents.
  • Transactions: First half of 2018 tallies second strongest start in sector history, positioning for a record-setting year.
  • Markets: Investors continue to focus on building strategic footprints in primary markets.
  • Sources of capital: Privatization and strategic portfolio acquisitions accelerate investment leader list.
  • Sources of risk: Concentrated competition driving investment further on risk spectrum.

U.S. Industrial cap rate map

Strength of rent growth is driver of modest and sustained cap rate compression throughout primary markets.


Methodology: Cap rates pertain to JLL’s expected average ranges for Class A assets being priced as of Q2 2018

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View the complete H1 2018 U.S. Industrial Investment Outlook for more on these latest industrial trends.