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​​​​​​United States Industrial Outlook | Q4 2017

Spurred by an increase in leasing activity for warehouse space, U.S. industrial rents inched up further, reaching $5.50 per square foot, with a year-over-year growth of 5.4 percent.

As top logistics markets continue to operate at a sub-3.0 percent vacancy rate, we expect continued competition for quality space and added pressure on rents through 2018.

New deliveries for 2017 was 232.7 million square feet. For the fourth quarter alone, roughly 68 million square feet delivered (30% of the annual total). Pre-leasing overall was down slightly to 47.4 percent, but spec deliveries made up 75.5 percent of all new completions, and were preleased at a healthy rate again in the quarter.

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 ($)

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% 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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