December 14, 2016
Industrial real estate market is at top of its game, says JLL
Industrial real estate market is at top of its game, says JLL By Jeff Berman, Group News Editor · December 8, 2016 | Logistics Manager The industrial real estate firm …

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Industrial real estate market is at top of its game, says JLL

By Jeff Berman, Group News Editor · December 8, 2016 | Logistics Manager

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The industrial real estate firm pointed to myriad factors for better than good market conditions in 2016, which it said are likely to continue in 2017, including: low interest rates, strong consumer spending, and e-commerce activity continuing to heat up. And on top of that JLL cited how potential future infrastructure investment, coupled with continued company expansion, could serve as demand drivers for future warehouse and distribution center development, too.

A wave of tremendous momentum in the industrial real estate market is showing no signs of crashing anytime in the neat future, according to analysis recently issued by JLL.

The industrial real estate firm pointed to myriad factors for better than good market conditions in 2016, which it said are likely to continue in 2017, including: low interest rates, strong consumer spending, and e-commerce activity continuing to heat up. And on top of that JLL cited how potential future infrastructure investment, coupled with continued company expansion, could serve as demand drivers for future warehouse and distribution center development, too.

“Things continue to be on a nice roll seem to be on a pretty good path relative to continued stability in the market, said Craig Meyer, President of JLL’s Industrial group. “Demand seems to be continuing at a strong pace and is up annually in 2016 as we are looking at nearly 250 million square feet of absorption, which is ahead of last year’s 230 million square feet. We also have a continuing decline of vacancy rates in just about every market, and we are seeing increasing lease rates and rising rents, which is what happens when there is a declining vacancy rate, which is at 5 percent and could go lower than that at some point.

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