Industrial Development Reaches All-Time High in 2017
Washington, DC, November 13, 2017-Industrial development reached a new high in 2017, driven by e-commerce, reports National Real Estate Investor (NREI).
“U.S. industrial real estate development hit an all-time high in 2017, with more than 208 million square feet completed so far, and another 277 million square feet currently under construction, according to research firm CoStar. Real estate services firm JLL is seeing similar trends, according to Mason Mularoni, JLL senior research analyst. Last year, a total of about 164 million square feet of new industrial space was completed in JLL’s calculations,” reports the NREI.
“Robust development activity is partly due to the industrial vacancy averaging just 5.2% for the second consecutive quarter, Mularono notes. He attributes the trend to increasing demand from e-commerce tenants.
“E-commerce sales have increased by 16% year-over-year and now account for 9% of all U.S. retail sales. E-commerce also accounts for about 12% of industrial leasing activity and an additional 22% to 30% of indirect leasing through closely tied logistics, distribution and 3PL channels.”