Industrial markets remain active, with 120 million square feet of completions so far this year
Completions and Texas: industrial markets remain active, as year to date completions reach 120 m.s.f.
August 28, 2019
- Completions and Texas: industrial markets remain active, as year to date completions reach 120 m.s.f. Texas markets are responsible for 21.4 percent of the total amount of YTD completions. Houston and Dallas lead the country in completions for Q2, at 6.2 m.s.f. and 5.8 m.s.f. respectively.
- Under construction in all Tiers: Tier I industrial markets Atlanta, Chicago, Eastern & Central Pennsylvania, Indianapolis and Inland Empire have robust construction pipelines, with over 10 m.s.f. currently under construction – Eastern & Central Pennsylvania reaching past 26.0 m.s.f. Tier II industrial market, Cincinnati holds market all time high with 10.2 m.s.f. under construction – a near 40.0 percent increase since last quarter.
- Demand outpacing supply, still: q-o-q completions increased by 20.3 percent, from Q1 to Q2 2019, with the latter seeing the second highest preleasing rate in the last three years (57.0 percent). With strong demand, rental rates continue to climb. Average asking rents saw an average increase of 3.2 annualized growth, climbing close to $6.00.
- Outlook strong: the development pipeline remains robust as year-end is expected to have upwards of 200 m.s.f. completed, similar to the past three years. Speculative completions have increased by 14.1 percent since last quarter and is expected to grow in the remainder of 2019.
Source: JLL Research