Industrial developments bolstered by available land
Industrial markets continue to see demand holding strong as supply delivers and tries to keep pace
May 29, 2019
- Top industrial markets continue to see demand holding strong as supply delivers and tries to keep pace. Atlanta, Eastern & Central Pennsylvania, Chicago, Inland Empire and Dallas are holding the lion share of big box availabilities. Based on our analysis, more than 50.0 percent of total big-box availabilities are coming from these markets.
- Where can developers go, lack of available land a serious concern? An interesting trend noted in Los Angles, New Jersey, and Mid Atlantic is that due to lack of available land, new construction availabilities is not an option for tenants in the market. New Jersey’s construction activity has fallen to its lowest point in three years and with few entitled land sites, 2019’s construction activity will stay low. Tenants looking for Class A product will have limited options in Los Angeles and New Jersey. Given the tightness in big-box space, developers are looking toward redeveloping outdated Class C buildings and inefficient Class B buildings.
Source: JLL Research