U.S. industrial remains stable, posting positive rental growth in the first quarter

May 06, 2019

Q1 2019 saw a slight uptick in vacancy rate (10 bps) to 5.0 percent—all eyes are on leasing activity 

In the first three months of 2019, the U.S. industrial market appeared to be in a steady state, but all eyes are on leasing activity as significant economic and trade factors could potentially cause a pullback in demand. Overall, the real estate market maintained the momentum seen in 2018 and vacancy continues to be near all-time historic lows. Despite a slight softening in vacancy and absorption, touring activity is stable, and the majority of the industrial markets demonstrated rent growth.

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

Click through the tabs below to compare market performance across key categories.

Inventory (s.f.)

Nearly 54 million square feet of industrial space was delivered in Q1. Moving the total industrial inventory over 13.2 billion square feet.

Market Inventory (s.f.)
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Rental rates ($)

The U.S. industrial rents moving closer to the $6.00-mark, at $5.79 per square foot.

Market Rental rates ($)
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YTD net absorption (s.f.)

YTD total net absorption at 42.0 million square feet.

Market YTD net absorption (s.f.)
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{{ item.netAbsSF }} s.f.
Total vacancy (%)

Vacancy at 5.0%, despite continued robust construction activity.

Market Total vacancy (%)
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Under construction (s.f.)

Despite a strong construction pipeline, strong pre-leasing trends in the newly built industrial product have helped keep the vacancy levels stable.

Market Under construction (s.f.)
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United States industrial property clock

JLL Industrial Outlook clock (image)

Source: JLL

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