Quarterly net absorption totaled 41.0 MSF and outpaced 34.4 MSF in new space completions as satisfied demand exceeded supply. Vacancy, as a result, finished at 6.9%, marking a 10-year low.

Nearly all markets have scenarios where their construction pipelines will be unable to keep up with tenant requirements this year. Vacancy will continue to decline, and this will allow landlords to further increase rents; warehouse rental rates, on average, may have 4.8% growth this year.

Read JLL’s overview of logistics and industrial services.