Skip to content
Search AI Powered

Latest Stories

newsworthy

U.S. industrial property sector continues recovery

JLL report shows strongest growth in markets that serve as distribution hubs.

The long-moribund U.S. industrial property sector, which showed signs of life in the second quarter of 2010, saw a pickup in activity in the third quarter, driven by increased leasing from large corporations, according to Jones Lang LaSalle's (JLL) third-quarter report on North American industrial trends released Tuesday.

Large corporations are taking advantage of still-low prices to consolidate to better locations or trade up to better-quality space, according to JLL's third-quarter North America Industrial Outlook report.


"Markets with strong logistics infrastructure that serve as distribution hubs to large populations are seeing the greatest growth levels," said Craig Meyer, managing director and head of Jones Lang LaSalle's logistics and industrial services group, in a statement.

Meyer said overall industrial vacancy rates remained relatively unchanged from the second quarter, holding steady at 10.4 percent. However, net absorption—the amount of space being leased relative to the space being returned to the market—has progressed into positive territory at 9.3 million square feet for the quarter. That is the second consecutive quarter of occupancy gains.

The Philadelphia/Harrisburg region led all regions in the quarter with 2.5 million square feet of positive net absorption. It was followed by California's Inland Empire at 1.9 million square feet.

Year to date, the Philadelphia/Harrisburg region showed a net absorption gain of 6.4 million square feet. Other regions that have showed recoveries include Chicago with 4 million square feet of positive net absorption for the year to date, Houston with an absorption increase of 3.6 million, and Dallas/Fort Worth with 2.6 million square feet.

Meyer said companies with large space requirements drove deal velocity in the third quarter. In addition, many transactions were new leases, "perhaps signaling the end of the dominance of renewals and consolidations," he added.

"Landlords remain aggressive to keep occupancy levels stable and the market as competitive as possible," Meyer said. "With construction still limited and big box space scarce, we are seeing some rent stabilization in some of the aforementioned major industrial hubs."

Still, the average third-quarter industrial asking rents across the nation fell 1.2 percent, marking the 10th consecutive quarterly drop since early 2008, JLL said. This trend will continue into 2011, at least in smaller regional markets, the report said.

All told, more than half of all markets reported a reduction in the amount of sublease space in the quarter, an indication that supply could be tightening and that higher rates could follow, the report said.

The Latest

More Stories

Mobile robots, drones move beyond the hype

Mobile robots, drones move beyond the hype

Supply chains are poised for accelerated adoption of mobile robots and drones as those technologies mature and companies focus on implementing artificial intelligence (AI) and automation across their logistics operations.

That’s according to data from Gartner’s Hype Cycle for Mobile Robots and Drones, released this week. The report shows that several mobile robotics technologies will mature over the next two to five years, and also identifies breakthrough and rising technologies set to have an impact further out.

Keep ReadingShow less

Featured

warehouse automation systems

Cimcorp's new CEO sees growth in grocery and tire segments

Logistics automation systems integrator Cimcorp today named company insider Veli-Matti Hakala as its new CEO, saying he will cultivate growth in both the company and its clientele, specifically in the grocery retail and tire plant logistics sectors.

An eight-year veteran of the Georgia company, Hakala will begin his new role on January 1, when the current CEO, Tero Peltomäki, will retire after a long and noteworthy career, continuing as a member of the board of directors, Cimcorp said.

Keep ReadingShow less

Securing the last mile

Although many shoppers will return to physical stores this holiday season, online shopping remains a driving force behind peak-season shipping challenges, especially when it comes to the last mile. Consumers still want fast, free shipping if they can get it—without any delays or disruptions to their holiday deliveries.

One disruptor that gets a lot of headlines this time of year is package theft—committed by so-called “porch pirates.” These are thieves who snatch parcels from front stairs, side porches, and driveways in neighborhoods across the country. The problem adds up to billions of dollars in stolen merchandise each year—not to mention headaches for shippers, parcel delivery companies, and, of course, consumers.

Keep ReadingShow less
image of board and prevedere software

Board acquires Prevedere to build business prediction platform

The Boston-based enterprise software vendor Board has acquired the California company Prevedere, a provider of predictive planning technology, saying the move will integrate internal performance metrics with external economic intelligence.

According to Board, the combined technologies will integrate millions of external data points—ranging from macroeconomic indicators to AI-driven predictive models—to help companies build predictive models for critical planning needs, cutting costs by reducing inventory excess and optimizing logistics in response to global trade dynamics.

Keep ReadingShow less
vecna warehouse robots

Vecna Robotics names Iagnemma as new CEO

Material handling automation provider Vecna Robotics today named Karl Iagnemma as its new CEO and announced $14.5 million in additional funding from existing investors, the Waltham, Massachusetts firm said.

The fresh funding is earmarked to accelerate technology and product enhancements to address the automation needs of operators in automotive, general manufacturing, and high-volume warehousing.

Keep ReadingShow less