Construction is driving industrial occupancy growth

1. St. Louis
Chart of the week: January 11, 2016
Source: JLL Research
Construction driving occupancy growth
• Industrial absorption reached almost two million square feet in 2015, bringing the total over the past two
years to just under six million square feet. In the past several years, existing buildings leased rapidly; but
construction was slow to ramp up, creating a strong demand for new product. Now that construction has
started to pick up, it has become the driver of absorption. In 2015, new construction accounted for 90.2
percent of absorption market-wide. Two speculative modern bulk distribution buildings delivered this
year were 94.4 percent pre-leased.
90%
Of the 1.9 million square feet of
absorption in 2015, 90.2 percent
came from new construction