Middle Market Digest: This Week in the South and Mountain Regions

The industrial market continues to be on fire, with conditions becoming ignited last year. According to JLL, low interest rates, healthy consumer spending and strong e-commerce are forming perfect conditions for industrial and logistics real estate growth in 2017. Potential investment in infrastructure and continued company expansion are also expected to fuel demand for warehouses and distribution centers despite global economic uncertainty, the brokerage firm says.

“We are leaving 2016 on a record high, with industrial real estate demand reaching new heights, with leasing in excess of 250 million square feet,” said Craig Meyer, president of JLL’s industrial group. “Many companies continue to expand while others adapt and perfect their supply chains to be closer to urban cores and their customers, driving record low vacancy rates even further and increasing leasing rates in response. With new construction still trailing demand, not only will we see ground-up development across major markets, but we will see creative and adaptive re-use of assets, a rise of infill development and the introduction of multi-story construction in or near urban locations.” This bodes well for not only markets located near large-scale distribution routes but port cities as well.—Lisa Brown