United States Industrial Outlook | Q4 2022

2022 finished as a successful year for industrial assets

February 09, 2023

The U.S. industrial market closed 2022 with 467.9 million s.f. of net absorption across the country, the second highest on record. The Dallas/Fort Worth, Atlanta and Chicago markets were responsible for nearly a quarter of the 98 million s.f. of absorption in Q4. Just over 9 million s.f. of vacant sublease space has come online throughout 2022 bringing the year-end total to 33.2 million s.f. However, this amount is negligible in the grand scheme of things as it only accounts for 0.2% of all vacant space.

Market performance categories
  • Leasing: Demand was very active with over 115.7 million s.f. leased this quarter in a variety of different industry sectors. While e-commerce has accounted for a high percentage of industrial leasing over the last two years, we are starting to see demand diversify amongst other industries such as Logistics & Distribution, 3PL, Construction Materials & Building Fixtures, Traditional Retailers, and Food & Beverage.

  • Rental Rates: 2022 closed with an average asking rate of $8.80 p.s.f marking a 19.2% year-over-year increase.

  • Net Absorption: While the nearly 100 million s.f. of net absorption in Q4 appears healthy, it is important to note that part of this figure can be attributed to the delivery of new projects which were pre-leased at the time of delivery.

  • Vacancy: As expected, the nearly record-breaking sum of new deliveries attributed to the vacancy rate increasing by 10 basis points quarter-over-quarter to 3.4%.

  • Under Construction: The 632.3 million s.f. currently under construction is still a record-breaking figure but is largely unchanged from the previous quarter indicating a slowdown in new ground breakings. Furthermore, speculative developments account for 84.4% of assets currently under construction.

Find your full local report:

Fill out this form to download report


Jones Lang LaSalle (JLL), together with its subsidiaries and affiliates, is a leading global provider of real estate and investment management services. We take our responsibility to protect the personal information provided to us seriously.

Generally the personal information we collect from you are for the purposes of dealing with your inquiry.

We endeavor to keep your personal information secure with appropriate level of security and keep for as long as we need it for legitimate business or legal reasons. We will then delete it safely and securely. For more information about how JLL processes your personal data, please view our privacy statement.