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Property market

-50

12-month change in total vacancy (bps)

1.7%

12-month net absorption (as % of inventory)

1.9%

12-month completions (as % of inventory)

5.3%

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

Investment market

$15.9

Investment sales (YTD, billions of $US)

20.8%

YTD investment sales growth

4.7%

Average cap rate

-17

12-month change in cap rate (bps)

  • Demand: New supply and net absorption on track to surpass 200 million square feet by end of 2018.
  • Transactions: Total volume increases over 20.0 percent year-over-year, marking second strongest start to a year on record.
  • Markets: Investors being outbid in core markets and are aggressively expanding to secondary and tertiary markets.
  • Sources of capital: Robust acquisition pipeline further advanced by large-scale portfolios and entity-level activity.
  • Sources of risk: Increasing risk-free yields coupled with escalation of trade-war rhetoric on investor radar.

U.S. Industrial cap rate map

Increased competition for assets is driving valuations across the board.


Methodology: Cap rates pertain to JLL’s expected average ranges for Class A assets being priced as of Q1 2018

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View the complete Q1 2018 U.S. Industrial Investment Quick Look for more on these latest industrial trends.