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​​​​​​United States Industrial Outlook | Q2 2017

U.S. industrial market rents now sit at an all-time high, inching up to $5.35 per square foot in Q2. Given historically low vacancy in most markets, rents continue to accelerate nationwide.

Locations like Northern California's North Bay, Central Valley and East Bay have seen double-digit rent growth as tenants fight for limited space.

The overall construction pipeline grew in more than half of the U.S. markets in Q2, increasing by 7 percent from Q1. Pre-leasing rates also jumped, rising by 370 basis points. And with overall pre-leasing now nearing 50 percent landlords continue to be encouraged by market conditions.

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

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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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