United States industrial outlook – Q3 2019

Supply and demand in equilibrium, tenants voicing more preferences 

November 12, 2019

Market fundamentals in Q3 are continuing to perform well, despite any talk of economic slowdown or upsets in trade. There are no blaring signs of industrial users pulling back yet or demand significantly fading. Rather, any shifts seen are in tenant preferences, including wanting newer, modern spaces and moving toward smaller leases as product delivery timelines continue to shorten.

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.)

YTD deliveries reached 192 million square feet, moving the total industrial inventory nearly 13.4 billion square feet.

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

The U.S. industrial rents crossed the $6.00-mark, up to $6.06 per square foot.

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

YTD total net absorption at 166.4 million square feet.

Market YTD net absorption (s.f.)
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Total vacancy (%)

Vacancy dropped 10 bps to 4.9 percent, despite continued robust construction activity.

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

Industrial product under construction remains very active, with Tier 1 markets leading the pack.

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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