Industrial real estate has been the one of the most sought-after property types nationally, leading to record low vacancies and increased competition among investors and tenants, according to JLL. When it comes to selecting a market for industrial investment, port markets are emerging as the safe bet for investors to park capital due to the positive rental growth profile.
With an average vacancy of 2.8 percent, port markets were well below the national average of 3.4 percent for industrial product at the end of the first quarter of 2022. Additionally, looking at new construction rates, 22.1 percent of total new inventory constructed in the industrial market during the first quarter was delivered in port markets.
“Both pent-up investor and occupier demand from the pandemic along with new buildings being delivered to the market have boosted asking rents,” said John Huguenard, senior managing director, JLL’s industrial co-leader in capital markets. “This ultra-com