US Industrial Market Hitting Peak

The 305K Aurora Distribution Center in Aurora, IL, is one of the newest distribution facilities in metro Chicago and is now fully leased.

CHICAGO—The US industrial sector, driven in part by the extraordinary expansion of warehouse and distribution facilities, is now considered a “peaking market,” and all of the major metro areas are at least on the rise, according to JLL’s analysis of the first quarter. The Chicago-based company says that means landlords are gaining leverage throughout the US, and since the sector is still in the early part of the peaking stage, the expansion should continue for some time.

“Rent growth is prevalent and speculative construction is becoming more widespread in terms of both geography and size segments,” the company states. A majority of the 51 metro areas studied had entered the peaking phase, with the rest considered to be rising markets. The strength of class A facilities has been particularly notable, with rents firmed and rising in all markets.