Driven by retail e-commerce demand, industrial construction has continued to grow. Below, Globe Street spoke with Rick Steger, Senior Vice President of JLL's Industrial Project Management group about JLL's most recent construction report and the implications for industrial.
The pace of new industrial construction has continued to quicken throughout the nation, much of it driven by demand from retailers and e-commerce companies trying to handle the growing volume of online sales. Construction deliveries in the sector grew 12.9% year-over-year, from 157.7 million square feet in the first quarter of 2015 to 178 million square feet in the first three months of this year, according to JLL’s latest report on non-residential construction activity.
“Spec construction over the past two years has just exploded,” Rick Steger, senior vice president and industrial project management lead of Chicago-based JLL, tells Globe St.com. Still, “it really cannot keep up with demand.” Users these days frequently need features such as increased parking, dock space for trucks, and the higher ceilings that make facilities suitable for e-commerce. He estimates that more than 50% of the recent new construction are such modern facilities, and this is helping fuel the construction boom. “In the past, many people just moved from one existing to another.”
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