Look for a surge in industrial leasing activity in the second quarter as several warehouse users are looking for space, according to JLL’s first-quarter report on industrial activity in the metro.

The outlook was included in the brokerage firm’s report, which highlighted activity in the first quarter of 2024. The report showed there were 13 leases signed on industrial property, totaling 224,000 square feet, with seven warehouse sales totaling $14.3 million.

The JLL report also showed industrial vacancies stood at 5.9% in the first quarter, with more than 1.3 million square feet of warehouse space under construction.

According to the report, 70% of positive absorption in the first quarter was the result of the new Hy-Vee distribution center in Cumming. Other contributors to positive absorption included completion of the Prairie Tower Business Park Building 1 in Urbandale, and a 200,000-square-foot building in Grimes, half of which is occupied by Donovan Marine. Completion of a building in the I-80 Business Park in Altoona that is occupied by JT Logistics also contributed to the positive absorption in the first quarter.

According to CBRE’s industrial report, three of six suburban communities experienced positive absorption quarter over quarter, with Ankeny accounting for over 75% of positive absorption.

While overall warehouse and distribution vacancy rates decreased to 7.5% quarter over quarter, the rate was still up year over year, up from 5.4% in the first quarter of 2023.

The CBRE report also showed that while there was positive absorption in the first quarter, there was a slight decrease in leasing.

The largest lease of the quarter was signed by Amazon for 157,500 square feet on Southeast Four Mile Drive in Ankeny. That lease accounted for over 75% of positive absorption, the report showed.

According to CBRE’s retail market report for the first quarter, retail vacancies continued to decline to 4.2%, down from 4.3% quarter over quarter.

The western suburbs had the strongest performance, accounting for 68% of the overall market’s positive absorption in the first quarter.

Retail leasing rates increased in the first quarter by 15 cents per square foot quarter over quarter to $16.33.

Read the market reports here.

JLL industrial
CBRE industrial
CBRE retail