Category Archives: Industrial Market

Ohio Markets Commercial Real Estate News Brief: November 2017

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In the latest edition of our monthly news brief, JLL’s regional team curates the top commercial real estate industry articles impacting Ohio markets to keep you in-the-know.

Keep up with Spaces’ monthly recaps—subscribe today.

The Need for Industrial Space on the Rise in Cincinnati and Columbus

Columbus, Ohio

Photo Credit: Always Shooting

It’s been a big year thus far for both Cincinnati and Columbus industrial markets. Cincinnati has experienced record-breaking activity since the start of the year, and total industrial vacancy sits at just 3.1%. Meanwhile, industrial vacancy in Columbus hovers near 4.4%.

To accommodate the rising demand, both cities are ramping up construction. Nearly 2 million square feet is currently being added to Cincinnati’s market, causing a much-needed uptick in vacancy.

Though Columbus is set to deliver 1.6 million square feet of space by the end of 2017, vacancy is expected to remain low. In fact, there is more than 9.5 million square feet of user demand in the market.

Download the Q3 Cincinnati Industrial Insight and Q3 Columbus Industrial InsightRead More

Who’s Winning the E-commerce Race? Midwest Real Estate Markets

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By: Matt Powers, Executive Vice President, JLL

Editor’s Note: This article was originally published on the NAIOP blog

Demand for industrial space across the U.S. is booming. In fact, the vacancy rate in industrial buildings dropped to 5.3 percent in the first quarter of 2017 — the lowest rate in 17 years. The active market is evidence that a shift in consumer shopping patterns has taken hold, changing the nature of warehouse demand. Responding to healthy consumer spending and growing e-commerce sales, the combined logistics and third-party logistics (3PL) sectors signed 21.8 million square feet of leases in the first quarter of 2017. This represents 24 percent of total leasing activity in the warehouse and distribution market.… Read More

Michigan Markets Commercial Real Estate News Brief: June 2017

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In the latest edition of our monthly news brief, JLL’s regional team curates the top commercial real estate industry articles impacting Michigan markets to keep you in-the-know.

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District Detroit Welcomes Residential Development Boom

District Detroit, the city’s major upcoming entertainment development, has announced plans for the city’s largest residential development in more than 20 years. The upcoming project will include the renovation of historic buildings as well as new construction.

Among buildings being redeveloped for multifamily housing, are:… Read More

Louisville Market Commercial Real Estate News Brief: April 2017

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In the latest edition of our monthly news brief, JLL’s regional team curates the top commercial real estate industry articles impacting the Louisville market to keep you in-the-know.

Keep up with Spaces’ monthly recaps—subscribe today.

Retail and Industrial Developments Gain Momentum in Louisville

Courtesy of JLL

A number of new development projects are in the pipeline for downtown and metro Louisville. Among those include a new distribution center and a retail development.

Illinois developer, Molto Properties, announced plans to construct a new distribution center in the Renaissance South Business Park. Molto Properties has already accounted for more than 1 million square feet of space within the business park. This new warehouse and distribution property would add an additional 677,160 square feet to their portfolio.

Construction of a 363,000-square-foot retail and lifestyle center has also begun in SouthPointe Commons near Fern Creek. The property will include a big box store, a movie theater and restaurants. Upon completion, the project is expected to create nearly 560 permanent jobs in the region.… Read More

Commercial Real Estate News Brief: April 2017

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In the latest edition of our monthly news brief, JLL’s regional team curates the top commercial real estate industry articles to keep you in-the-know. In this month’s edition, JLL spotlights multifamily demand, the growth in e-commerce and the impact of home rentals on the hospitality industry.

Keep up with Spaces’ monthly recaps—subscribe today.

Rising Downtown Populations Spur Need for More Multifamily Development

More millennials, members of Generation X, and even baby boomers moving downtown have created an uptick in demand for multifamily development. Detroit, for instance, happens to be one market whose multifamily sector has taken off with 1,551 units added in just the last five years.

According to a data from the U.S. Census Bureau, 52 out of America’s 100 largest cities were in the renter majority in 2015. This trend is expected to continue even as millennials begin families. Baby boomers who are looking to downsize from their larger, multi-bedroom homes will cause the overall percentage of renters to keep increasing.

Related Read: JLL Research: 3 Ways Reurbanization is Revitalizing Midwest Markets

Because Midwest cities like Cincinnati, Detroit and Columbus are experiencing positive population growth, business retention and investment follow closely behind. Cities will soon need to strategize how to equip infrastructure and public spaces to accommodate the growing downtown populations.… Read More

JLL Investment Research Highlights Trends in Office, Industrial & Retail

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By: Andrew Batson, Manager of Research & Analysis, JLL

In 2015, the U.S. industrial sector exceeded the office sector as the largest recipient of offshore capital for the first time. Ever.

In fact, foreign investments across cities, submarkets and sectors, are affecting transaction structures nationwide. According to the Q4 2015 Investment Outlook Report, “With $71.7 billion of cross-border transactions, this investment surpassed the former 2007 peak of $40.7 billion by 71.6%.”

JLL Investment Outlook

The 2016 outlook should include a focus on primary markets, followed by a steady, selective variation of outsider capital interest into other market segments. But, as JLL suggests, “the offshore buyer pool remains strong and is growing.”

Read on to learn how strong economic and leasing performance benefitted the office, industrial and retail sectors in 2015. As a bonus, check out major investment highlights from the Great Lakes region in each property type.

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New, Million-Square-Foot Warehouse in Columbus Shows Continued Industrial Market Growth

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By: Dan Wendorf, Executive Vice President, JLL

Columbus is the industrial envy of other Midwest markets, with more than 219 million square feet of industrial space. And now—with just one new development—Columbus is adding another million to the books.

NorthPoint Development and JLL recently broke ground on a one million-square-foot warehouse in the Rickenbacker submarket of Columbus. See what’s happening now in Clayco’s real-time construction webcam.

NorthPoint Development

NorthPoint’s location selection was not on accident. Throughout Columbus, vacancy is down and demand is up, according to JLL Research. Columbus is the prime location for the brand new warehouse.

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Why Investors Look to Ohio for Industrial Real Estate (REPORTS)

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By: Robert Kramp, Senior Vice President and Director of Research, JLL, Midwest and Great Lakes Region

Ohio is a hot spot for industrial investors across the nation. In May 2014, a Minneapolis-based real estate investment group bought a $43 million, 767,000-square-foot portfolio in Northeast Ohio. Another example: A Chicago-based company purchased a 465,000-square-foot Columbus warehouse for $8.5 million in September.

The list of similar, out-of-state investors goes on. It’s more than a trend; Ohio has become an industrial hub. JLL research released three reports, spotlighting related activity in three of the nation’s most active cities—Cincinnati, Cleveland and Columbus.

Why Ohio?

  • The Heart of It All: Ohio is America’s heartland. When it comes to location, it has set up shop right on the nation’s metaphorical Main Street. With major airports, highways and rail lines intersecting throughout the state, Ohio is nationally and internationally accessible. Ohio’s transportation infrastructure is ideal for convenient and cost effective delivery.
  • Affordability: The Midwest, overall, dominates when it comes to cost-friendly living. A whopping five cities in Ohio made Forbes’ America’s Most Affordable Cities list, including Cincinnati and Columbus, as well as Dayton, Akron and Toledo. Housing affordability, cost-of-living index, and the methodology the Bureau of Labor Statistics uses for rankings of the Consumer Price Index were used to determine which cities made the cut.
  • Nurtures Business Success: From Cardinal Health and Google, to Kroger and The Limited Brands, many of America’s top Fortune 500 companies are already doing business in Ohio’s major cities.

In terms of industrial focus, three Ohio cities stand out among the rest, offering cost effective and opportunistic landscapes.

Cincinnati: Industrial and Logistics Hot Spot 

When it comes to local Fortune 500 companies (per million residents), Cincinnati beats out New York, Boston, Chicago and Los Angeles. Thanks to the low cost of business and favorable tax structure, Cincinnati’s environment is highly competitive, and therefore, has attracted both local and foreign investors. Currently, more than 50,000 Cincinnatians are employed by foreign-owned businesses.


Over the past year, Cincinnati experienced increased commercial real estate activity from the e-commerce and manufacturing sectors. eBay is a key example, which recently pre-leased a 631,000-square-foot warehouse. Additional big-name manufacturing companies doing business in Cincinnati include GE and Proctor and Gamble.

  • More than 3 million square feet of space under construction.
  • 70% of space under construction is speculative.
  • More than 4 million square feet absorbed in 2014.

Check out JLL’s full report for more insight and statistics on Cincinnati’s emerging industrial scene.


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Industrial Distribution Networks Evolve to Accommodate E-commerce [REPORT]

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By: JC Pelusi, Great Lakes Market Director at JLL

Largely due to emerging markets, B2C e-commerce spend will hit $1.5 trillion in 2014, according to a recent study from eMarketer.

Online shopping is the ultimate convenience. And thanks to evolving distribution center design and strategy, retailers are able to deliver online orders in a timely fashion. So, how have retailers evolved the structure of industrial real estate to meet consumer expectations? Below, JLL researchers recap the evolution of retail logistics over the past 40 years.

See JLL's whitepaper, E-commerce Boom Triggers Transformation in Retail Logistics, for details.
Along with looking back across the last four decades, JLL’s retail team also looks ahead to answer the question on the minds of many in industrial real estate: What’s on the horizon?

According to JLL’s recent whitepaper, E-commerce Boom Triggers Transformation in Retail Logistics, a new class of retail distribution centers has emerged, including a variety of distribution and fulfillment centers, hubs and warehouses. Below we’ve outlined three of the top trends driving change in retail logistics facilities.

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3 Demands Driving Distribution Center Design

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By: AJ Magner, Managing Director at JLL & Joe Messina, Senior Vice President at JLL

Parts of Ohio, Michigan and Pennsylvania are home to major distribution centers, including Procter & Gamble, Eddie Bauer, lululemon athletica and, tentatively, Thanks to accessible highways, an inventory of economical land opportunities and the historically low-cost labor markets, the region houses prime real estate for warehouse facilities.

Distribution centers are the backbone of retail industry operations. They are at the core of all product management, inventory, storage and shipment.

According to JLL’s researchers, recent advancements and trends have influenced layout designs of warehouse facilities to change. Stay ahead of the game, and ensure your warehouse operations are up-to-speed by investigating the top demands driving design concepts for distribution centers.

Top Demands Driving Distribution Center Design

Demand 1: Sustainability Keeps Costs Down 

To account for inherent transportation costs, and also balance out the escalating prices of fuel costs and wages, energy efficiency has moved to the forefront of design. Skylights, LED lighting, daylight harvesting and solar panel installations help to conserve energy and cut costs, requiring less electricity to illuminate the facility. 

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