Demand for warehouse space is hitting record highs, and that doesn't appear to be abating anytime soon, according to the 9th annual Industrial Tenant Demand Study from JLL Industrial.

In the study that tracks 1,800 individual future tenant requirements needing over 600 million square feet of space, JLL found that future demand volume is up 22% year-over-year in 2021. Logistics and parcel delivery is driving that growth.

Right now, increased competition and lack of available space are keeping tenants in the market slightly longer than last year. While new to market transactions slowed slightly in 2020 due to the pandemic, new requirements increased by 27% this year as tenants readjust to meet consumer demand. In addition, requirements for manufacturing space rose 93% year-over-year.

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Leslie Shaver

Les Shaver has been covering commercial and residential real estate for almost 20 years. His work has appeared in Multifamily Executive, Builder, units, Arlington Magazine in addition to and Real Estate Forum.