Midwest U.S. Industrial MarketView Snapshot Q2 2018
Midwest industrial continued to post strong occupancy growth, low vacancy, increasing average asking lease rates, and continued new construction activity in Q2 2018.
New construction activity is strong, with 26.9 million sq. ft. completed in 2018 year-to-date. Approximately 51.5 million sq. ft. is underway with 44% pre-leased.
Year-to-date over 37.8 million sq. ft. of positive net absorption was posted.
Average asking lease rates increased 2.5% from $4.54 per sq. ft. at the close of 2017 to $4.66 at the close of Q2 2018. Vacancy declined 70 basis points (bps) over the same period, from 4.6% at the close of 2017 to 3.9% at the close of Q2 2018.