Middle Market Digest-The Midwest

BY THE NUMBERS

CHICAGO—US industrial market rents now sit at an all-time high, inching up to $5.35 per square foot in the second quarter, according to a new report from Chicago-based JLL. “Given historically low vacancy in most markets, rents continue to accelerate nationwide,” JLL says. “Locations like Northern California’s North Bay, Central Valley and East Bay have seen double-digit rent growth as tenants fight for limited space.” The overall construction pipeline increased seven percent from the first quarter, and grew in more than half of the US markets. Pre-leasing rates also jumped, rising by 370 bps. And with overall pre-leasing now nearing 50% landlords continue to be encouraged by market conditions.