JLL: Demand for warehouse and distribution space is on the rise

The industrial real estate services and investment management firm said healthy consumer spending and strong e-commerce s ales are driving demand for warehousing and distribution space.    JLL, a Chicago-based industrial real estate services and investment management firm, noted how healthy consumer spending and strong e-commerce sales are driving demand for warehousing and distribution space.
   Industrial vacancy in the United States has hit a 17-year low, currently standing at 5.3 percent, according to JLL’s Industrial Outlook 2017.
   JLL pointed to three trends, which show that:
     • U.S. industrial rents, already at record highs, are continuing to increase;
     • Logistics and distribution, and third-party logistics sectors are dominating leasing;
     • And 2017 is projected to be another solid year for construction.
   U.S. asking rents in the first quarter of 2017 increased by 70 basis points quarter-over-quarter, closing at $5.25 per square foot, on a triple net basis. The top four markets with the largest year-over-year rent growth included Northern New Jersey, San Francisco mid-Peninsula, Seattle and the Inland Empire.