2023 Development Report

STATE OF DEVELOPMENT DIVING DEEPER

INDUSTRIAL – Key Metrics

INVENTORY & VACANCY

Industrial Inventory & Vacancy

6%

150k

Industrial inventory has climbed steadily since 2019. During the last year, industrial inventory rose 2 percent, adding approximately 2.5 million square feet from 1Q22 to 1Q23. Large-scale projects including Speedrack Products Group’s Walker expansion, and Amazon’s Warehouse and Distribution Center in Gaines Township contributed to overall inventory growth in the past year. SQ. FT. UNDER CONSTRUCTION Industrial projects under construction ticked up in 1Q23 after having much of the pipeline drained from project completions through 2022.

Inventory Vacancy

4%

145k

2%

140k

0%

135k

2019

2020

2021

2022

2023

Source: JLL

Industrial Space Under Construction (Sq Ft)

2.5M

2M

1.5M

1M

500k

0

ASKING RENTS In 1Q23 asking rents for

2019

2020

2021

2022

2023

Source: JLL

industrial properties showed the first dip since 4Q21, edging down 1.6 percent from the previous quarter. Industrial rents remain approximately 2 percent above those during the same quarter the previous year, and around 29 percent above those of 2019 levels.

Industrial Average Direct Asking Rent

$5.00

$4.50

$4.00

$3.50

$3.00

2019

2020

2021

2022

2023

Source: JLL

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STATE OF DEVELOPMENT – DIVING DEEPER

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