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Industrial construction is at an all-time high, but is demand keeping up with supply?

With industrial construction on a record shattering pace in 2017 it’s fair to wonder, is the market in danger of becoming overbuilt? A quick look at the data during this current cycle clearly shows the answer is no. Demand has outpaced supply by more than 200,000 square feet on average since 2015.

Looking ahead, we expect an additional six million square feet of construction to come online by year’s end. Anticipated tenant movement during that same time forecasts three million square feet of net absorption. With vacancy currently below 7.0 percent, a flip of the script to supply outpacing demand is a positive in the short term. The introduction of this new, modern space will allow Indianapolis to remain competitive in securing future tenants looking to locate in the Midwest. 

Source: JLL Research



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