Q3 2016 Industrial Investment Outlook

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The U.S. Industrial market is going strong, as absorption rates continued to hit new highs in the third quarter of 2016. JLL’s report identified five key themes that have emerged across the country.

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Below are highlights from the top three themes in JLL’s Q3 U.S. Industrial Investment Outlook report:

  1. The U.S. industrial market is seeing resiliency in many major markets but good net absorption activity in some secondary markets as well-both within the existing product and in new construction.
  2. This year has seen two consecutive quarters of investment volume growth and is currently on pace to rank second in overall volume to 2015 since 2008. Strong tenant demand and a steady approach to development continue to attract investment.
  3. The scarcity of large-scale portfolio opportunities throughout 2016 has shifted the bulk of investment activity into transactions that fall within the $20.0 and $150.0 million range through the third quarter. The limited supply has also largely contributed to an overall shift in completed transactions from last year, as more than half of total volumes have fallen within transactions in this range through the third quarter of 2016.

Download JLL’s Q3 U.S. industrial investment outlook for more information on all the themes.

 

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