By: Robert Kramp, Vice President and Director of Jones Lang LaSalle, Midwest and Great Lakes Region
As demonstrated in JLL’s new Industrial Market Spotlight infographic, the U.S. industrial market is seeing positive gains in national (as well as regional) activity–specifically in speculative construction. Following Q2 2013, JLL experts forecast that the Midwest, Southeast and Northeast regions will see increasingly positive activity in the coming quarters.
In regional news, the Midwest has recently sparked the interest (and spend) of investors. In fact, the region led the national industrial sector in number of requirements following the summer of 2013. Industrial investors value the Midwest’s access and interconnectivity to large population centers–especially as logistics and global supply chains are igniting further interest in local cities and available assets.
Cities catching investor’s eyes’ include Columbus, Philadelphia and Cincinnati. To emphasize ease of interconnectivity, Columbus is located within 10 hours of almost half of U.S. consumers. This alone is attractive to distributors. To the South, Cincinnati has seen strong industrial growth in recent quarters. As a result, 800,000 s.f. of industrial space was added over the course of just one year (2012). An additional 1.1 million s.f. is currently under construction. It’s clear that investors are coming back.
Detroit and Cleveland are following behind Columbus, Cincinnati and Philadelphia; however, they do have potential. Detroit and Cleveland are among the top 10 cities nationally with the highest total industrial inventory–creating opportunities for both cities. An added bonus, industrial activity in Detroit generated 3,200 trade sector jobs and 1,200 manufacturing jobs during Q1 alone.
About the Author
As Vice President and Director in the Midwest and Great Lakes Region at Jones Lang LaSalle, Robert has experience in the industrial, retail, multifamily and land sectors. Read up on Robert’s experience or connect with him on LinkedIn.