We use cookies to provide you with a better experience. By continuing to browse the site you are agreeing to our use of cookies in accordance with our Cookie Policy.
  • INDUSTRY PRESS ROOM
  • ABOUT
  • CONTACT
  • MEDIA FILE
  • Create Account
  • Sign In
  • Sign Out
  • My Account
Free Newsletters
  • MAGAZINE
    • Current Issue
    • Archives
    • Digital Edition
    • Subscribe
    • Newsletters
    • Mobile Apps
  • TRANSPORTATION
  • MATERIAL HANDLING
  • TECHNOLOGY
  • LIFT TRUCKS
  • PODCAST ETC
    • Podcast
    • Webcasts
    • Blogs
      • One-Off Sound Off
      • Global Logistics and Risk
      • Empowering Your Performance Edge
      • Analytics & Big Data
      • Submit your blog post
    • Events
    • White Papers
    • Industry Press Room
      • Upload Your News
    • New Products
      • Upload Your Product News
    • Conference Guides
    • Conference Reports
    • Newsletters
    • Mobile Apps
  • DCV-TV
    • DCV-TV 1: News
    • DCV-TV 2: Case Studies
    • DCV-TV 3: Webcasts
    • DCV-TV 4: Viewer Contributed
    • DCV-TV 5: Solution Profiles
    • ProMat 2023
    • Upload Your Video
  • MAGAZINE
    • Current Issue
    • Archives
    • Digital Edition
    • Subscribe
    • Newsletters
    • Mobile Apps
  • TRANSPORTATION
  • MATERIAL HANDLING
  • TECHNOLOGY
  • LIFT TRUCKS
  • PODCAST ETC
    • Podcast
    • Webcasts
    • Blogs
      • One-Off Sound Off
      • Global Logistics and Risk
      • Empowering Your Performance Edge
      • Analytics & Big Data
      • Submit your blog post
    • Events
    • White Papers
    • Industry Press Room
      • Upload Your News
    • New Products
      • Upload Your Product News
    • Conference Guides
    • Conference Reports
    • Newsletters
    • Mobile Apps
  • DCV-TV
    • DCV-TV 1: News
    • DCV-TV 2: Case Studies
    • DCV-TV 3: Webcasts
    • DCV-TV 4: Viewer Contributed
    • DCV-TV 5: Solution Profiles
    • ProMat 2023
    • Upload Your Video
Home » Industrial property market finishes strong to punctuate solid year, JLL report says
newsworthy

Industrial property market finishes strong to punctuate solid year, JLL report says

February 16, 2015
DC Velocity Staff
No Comments

The U.S. industrial property market capped off a solid year with a strong fourth quarter, according to a report issued today by real estate and logistics services giant Jones Lang LaSalle (JLL). Steadily rising tenant demand, combined with "generally measured" construction deliveries, drove vacancy rates below levels last seen in 2007 prior to the Great Recession, the report said.

Average 2014 "asking rents" for warehouse and distribution center, manufacturing, transportation, and logistics space rose 4.5 percent from 2013 levels. Rents are nearing the last cycle's highs reached about 10 years ago, and further increases are expected in 2015, according to the firm's industrial outlook.

The industrial vacancy rate in the fourth quarter stood at 6.9 percent, down a full percentage point from the same period a year ago, JLL said. Net absorption, defined as the amount of occupied space less the amount of space vacated, was positive for the 19th consecutive quarter with 61.2 million square feet. Net absorption for the year hit 219 million square feet, up 30 percent from 2013 and ahead of the firm's original projection of 185 million square feet, the report said.

Vacancy rates in 2015 are expected to narrow as much as another one-half percentage point to 6.4 percent, the report said.

New deliveries, a barometer of construction activity, totaled 142.1 million square feet, up 56.5 percent from 2013, the report said. Although new deliveries may hit 171 million this year, they are still below the last cycle's annual average of 184 million square feet.

Speculative construction, which ground to a halt during and after the Great Recession before finally perking up, rose 12.3 percent in the fourth quarter compared to the prior quarter. Despite the gains and the fact that "new groundbreakings are not showing any signs of letting up" nationwide, the market shows few signs of overheating, the report said.

JLL said the story of the year was the Southeast, which had lagged the rest of the country's recovery, which has been underway for four to five years. Annual net absorption for the Southeast hit 47.9 million square feet, up 85 percent from 2013 levels. Much of the gains, the report said, were fueled by activity in Atlanta, where annual absorption figures were more than double 2013's totals and vacancy rates were reminiscent of the late 1990s when the metro area reported significant population gains and demand for space was strong across a wide range of industries, especially high tech and telecommunications.

Of the 50 markets that JLL surveys, Atlanta ranks second only to California's Inland Empire in construction activity.

Logistics Network Design
KEYWORDS JLL
    • Related Articles

      North American industrial property market to see strong growth through 2017, report says

      JLL report forecasts strong demand for U.S. industrial property in '16, record low vacancies

      U.S. industrial property rents hit record high in third quarter, JLL says

    Recent Articles by DC Velocity Staff

    Cargo theft and fraud rose 41% in the first 20 weeks of 2023 over last year, CargoNet warns

    Gartner: Top supply chains of ’23 balance risk control, new growth channels

    OSHA, industrial safety experts to headline National Forklift Safety Day 2023

    You must login or register in order to post a comment.

    Report Abusive Comment

    Most Popular Articles

    • Logistics pay remains high, but job satisfaction dips

    • Schneider National opens innovation center at Wisconsin headquarters

    • FedEx trims costs again with plan to shut 29 locations in its less-than-truckload division

    • DHL Supply Chain will expand Locus Robotics fleet to 5,000 AMRs

    • Ocado plans to grow automation beyond grocery sector with 6 River Systems acquisition

    Now Playing on DCV-TV

    4cd1b546 9bdb 4b5e 9eaa 10bc1c4f367d

    The Robotize GoPal Autonomous Mobile Robot (AMR) Solution at Kärcher

    DCV-TV 4: Viewer Contributed
    Kärcher is a German global leader within cleaning products for both professional and home use. The company recently expanded its production capacity in Europe with the construction of a second factory in Romania. With two large factories in operation and a looming labor shortage, Kärcher began looking for a way to...

    FEATURED WHITE PAPERS

    • Exploring Customized Forklift Solutions

    • Exploring the Future of Labor Management With Capacity Planning

    • Three layers of forklift safety: Promoting operating best practices

    • The Complete Guide to Automated Packaging

    View More

    Subscribe to DC Velocity Magazine

    GET YOUR FREE SUBSCRIPTION
    • SUBSCRIBE
    • NEWSLETTERS
    • ADVERTISING
    • CUSTOMER CARE
    • CONTACT
    • ABOUT
    • STAFF
    • PRIVACY POLICY

    Copyright ©2023. All Rights ReservedDesign, CMS, Hosting & Web Development :: ePublishing