Look for leasing volumes in Memphis’s industrial market to continue to accelerate throughout 2014. That’s part of the positive forecast for Memphis included in JLL’s North America Industrial Outlook. According to the report, total net absorption was a positive 154,430 square feet in the Memphis market in the first quarter of 2014, which follows 3,061,025 square feet absorbed in all of 2014.
The industrial market will maintain its strong absorption and leasing activity, according to the report, due to strengthening corporate confidence in the overall economy.
One of the key trends that will impact the Memphis market is the scarcity of Class A bulk space. It’s also one of the factors that will contribute to a tightening in the gap between asking and effective rental rates.
Due to the ongoing improvement in industrial market fundamentals, investor demand for Class A industrial product will outpace supply, and there will also be a significant increase in investor demand for Class B industrial space, according to the report.
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