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Developers capitalize on robust demand for small space industrial

  • ​​Starting in 2015, Salt Lake developers have taken notice of the strong tenant demand for smaller industrial space.
  • Asking lease rates for spaces under 15k square feet increased by 14.7%, from $.38 NNN in 2011 to $.44 in 2015. In the last two years lease rates have increased an additional 40.5% to reach $.61 and now surpass the previous 2008 high of $.57 NNN
  • In attempts to keep pace with this demand developers began to focus more on smaller increment buildings in 2015. Each year since 2015 the percentage of new inventory delivered that caters to smaller tenants under 15k square feet has steadily increased. In fact,  Salt Lake added more buildings with increments under 15k square feet than any other building type in 2016 & 2017. However, continually increasing rates in that size range ​give strong evidence that demand is still outpacing supply. 

Source: JLL Research​

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