JLL: The State of Industrial Real Estate
Q4 / Fall 2013
With 10 percent of total U.S. construction correlated to e-commerce use, the retail sector's needs are diverse, ranging from mega-million-square-foot fulfillment centers to tighter urban logistics centers.
In terms of geography, the Northeast is leading the country in active tenant requirements, where the volume of requirements increased 43 percent since the spring of 2013. The Midwest ranks second by square footage, with e-commerce retailers leading all other industries. Meanwhile, demand is relatively unchanged in the Southwest and flat in the Inland Empire.
While big-box space requirements and counts are up, so are mid-to-larger distributors looking for modern space. In fact, demand is filling out in multiple markets and size sectors. According to Ahlburn, developers are working to accommodate these various sectors' needs by offering a range of square footages and sector-specific solutions.
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