Industrial markets such as Milwaukee, Nashville, and Cincinnati, among others, have solid population growth, good transportation links, as well as cheaper labor and lower construction costs than big markets like Chicago.
Although FIRE sector tenants still command a lion's share of office space, "They're not the reason that new construction has taken off in New York for the first time since the mid 1980s," says Michael Cohen at Colliers.
Leasing activity in the Greenspoint market, considered a good location with amenities, continues to be steady as the Houston economy strengthens following the recent downturn in the oil industry.
RentCafe says that the fastest year-over-year growth stems from small and medium-sized cities, while a well-filled delivery pipeline will temper future gains overall.