Episode 37: 2021 Midwest Industrial Outlook

JLL Chicago Industrial Real Time

This is Episode 37 recapping the JLL 2021 Midwest Industrial Outlook Report which provides insight into 14 markets across the nation’s heartland region. The report focuses solely on modern bulk distribution product with an emphasis on the top tenants, institutional developers, and investors. The report also includes findings from a survey from the field of JLL professionals in each market. Questions were focused on the state of each market’s institutional product both currently under construction and the pipeline for the next 12 months.

1:35: Introduction of how JLL defines institutional grade modern bulk or “Big Box” warehouse product

4:03: Modern bulk product accounted for 70% of the overall net absorption since 2016 across the Midwest

7:40: Tenants are signing leases with phased in occupancy with plans to grow into a large space.

10:40: Survey respondents are expecting a 15% increase in tenant demand in 2021

11:22: The interactive dashboards in the report allow us to understand trends and see which investors and tenant industries are active across the different markets

13:00: Looking at 2020 figures, Chicago, Columbus and Indianapolis set records for construction completions

14:35: The owner-user build-to-suit trend is increasing as a result of reshoring

18:31: Land constraints challenge developers to look along the fringe of the market for larger tracts for business park development

21:27: The region benefits from critical transportation infrastructure such as the parcel air hubs, intermodal terminals and inland waterways.

22:30: The Midwest markets can service a large swath of the East Coast population within one day’s drive time.

To access a copy of the report, visit our website for the 2021 Midwest Industrial Outlook

https://www.us.jll.com/en/trends-and-insights/research/2021-midwest-industrial-outlook