Skip Ribbon Commands
Skip to main content

Rent growth climbs 30+ percent for last-mile Bay Area distribution

  • ​E-retailers striving to provide faster deliveries to their consumers have reshuffled their real estate strategies. Last-mile focused tenants increasingly target proximity to metropolitan areas and have a willingness to pay premium rents. Deal velocity has picked up in the last two years, with about 53 percent of all Bay Area last-mile deals since 2011 occurring either during or after 2016.
  • The additional market demand from these less price-sensitive users has fueled upticks in lease rates, which have risen between 29.7 percent and 103.5 percent since the market trough in 2011,  and between 29.8 and 73.7 percent in the last two years alone.
  • E-commerce driven requirements for space will continue to add to the existing +/- 12.1 million square-feet of tenant demand targeting the Bay Area markets. Neighboring markets, Livermore and the Central Valley have been benefitting from the growth of the e-commerce sector, where owners have been experiencing ongoing spillover Bay Area tenant demand for a while.​

Source: JLL Research​

Get our latest insights


Connect with us