Exceeding (and nearing) last cycle
Our Q4 2014 U.S. Industrial Outlook provides an overview of supply and demand conditions, as well as detailed statistics and brief analyses of major industrial markets. Highlights include:
- Increasing tenant demand, paired with 19 consecutive quarters of positive absorption, caused U.S. vacancy to finish the year at 6.9 percent, 80 basis points lower than 2007’s rate.
- In line with vacancy’s decline, asking warehouse rents are now nearing last cycle’s high.
- Although construction deliveries increased in 2014, they were still below last cycle’s average.
- There remains a window for demand to continue to outstrip new supply, and this will benefit rental rates. A few markets, however, run the risk of speculative deliveries outpacing demand requirements.
San Diego’s economy continues its steady recovery, which has contributed to the growth in the industrial market. Annual job growth in November was the largest so far in 2014 with employment up 43,000 or 3.2 percent over the year.
San Diego Market Drivers
- Small-box market to cater to local tenants’ needs
- Well-educated, local workforce
- VC funding points sustained growth in biotech and life science industries
- Lack of affordable and developable land
Download your copy of the Q4 2014 U.S. Industrial Outlook today for deeper insight on industrial real estate conditions, including spotlights on San Diego and 49 additional markets across the country.
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Tweet this: #US #Industrial #vacancy is now in the high 6s; it is expected to tighten another 30-50 bps in 2015. @JLLNews #CRE http://ctt.ec/xV2dW