AI data center projects boost US warehouse demand and rents, real estate company JLL says
AI data center construction, especially around Dallas/Fort Worth and Washington, D.C., is increasing demand for nearby warehouse space, according to JLL. The added demand from suppliers and infrastructure providers helped drive higher industrial rents in the third quarter.
AI data center construction is boosting demand for warehouse and industrial space near major development hubs, particularly Dallas/Fort Worth and Washington, D.C., JLL said in its third-quarter industrial real estate report. Suppliers and infrastructure providers are clustering near large data center campuses, contributing to higher warehouse rents.
JLL reported that average asking rents rose 3.2% year over year to $10.55 per square foot, the fastest annual increase since the second quarter of 2024. The company said the growth of electricity-intensive data centers and other infrastructure-heavy industries is also changing the mix and geographic distribution of industrial tenants.