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​​​​​​United States Industrial Outlook | Q3 2017

After a somewhat slower second quarter, the third quarter brought momentum back to the U.S. industrial market. Both supply and demand indicators, new completions and net absorption exceeded midyear levels.

Of the tier 1 markets, Baltimore, Atlanta and Inland Empire were especially strong. Each saw total net absorption as a percent of total stock exceed 2.5 percent. Overall, in more than half of the industrial markets we track, the year-to-date total net absorption exceeded total new deliveries, showing stable demand levels as new product is delivered.

Spurred by an increase in warehouse and logistics absorption and persistently low market vacancy, U.S. industrial rents rose in Q3, reaching $5.40 per square foot, an all-time high.

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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