GDP GROWTH • EMPLOYMENT • MONETARY POLICY • GLOBAL ECONOMY GDP GROWTH: TRENDING IN Q2 2023 The Commerce Department said the U.S. economy grew at a 2.4% annual rate in the second quarter, an increase from the 2% gain in Q1, defying both expectations and attempts by the Federal Reserve to slow it down to curb inflation. READ MORE> EMPLOYMENT: TRENDING IN Q2 2023 The unemployment rate remained virtually unchanged even as job growth…
Q2 2023 North America Market Report
INDUSTRIAL OVERVIEW: INDUSTRIAL GROWTH ON TRACK FOR LEAST GAIN IN YEARS In a reversal from the ballooning logistics capacities required during the pandemic, demand for space has slowed across North America. After continuously rebuilding inventories from the fall of 2021 through Q3 last year, many retailers and wholesalers are taking a breather, pausing further inventory accumulation out of caution over the economic outlook. In the U.S., second-quarter net absorption was down 58% year over year,…
Q1 2023 Economic Reports
GDP GROWTH • EMPLOYMENT • MONETARY POLICY • GLOBAL ECONOMY GDP GROWTH: TRENDING IN Q1 2023 The nation’s gross domestic product slowed dramatically in the first quarter, reflecting reduced production of goods and services that rose at a seasonally adjusted 1.1% annual rate in the first three months of the year. Nevertheless, the Q1 data released by the Commerce Department shows that consumers still are spending despite higher prices driven by high inflation, which the…
Q1 2023 North America Market Report
INDUSTRIAL OVERVIEW: SHARP DECLINE HITS FIRST-QUARTER U.S. DEMAND There was a sharp first-quarter decline in U.S. tenant demand for industrial space as wholesalers and retailers reconsider their inventory levels out of caution over the economic outlook. Net absorption in the first quarter totaled 39.4 million SF, a 57% drop from the record set a year ago. Demand for Canadian industrial space in Q1, however, gained nearly 21% year over year. The overall U.S. vacancy rate…
Q4 2022 North America Market Report
INDUSTRIAL OVERVIEW: RECORD RENT GROWTH, LOW SUPPLY Relentless demand continued for warehouse-and-distribution space across North America in 2022. The year ended with a surge in fourth-quarter absorption along with more double-digit annual rent growth. While growth has slowed from the fever pitch of 2021, there have been no signs of significant deterioration in the fundamentals driving demand for industrial space. Inflation-adjusted retail goods sales and truck tonnage are at high levels, and containerized imports at…
Amazon and the State of Industrial Real Estate
Since 2013, the rise of e-commerce has caused such an enormous boom in industrial real estate that it has become the preferred asset class of many commercial real estate investors. At the heart of the e-commerce revolution has been Amazon. Even before the pandemic, the firm had around 192 million square feet of warehouse, data center, and distribution space across the U.S. and Canada. Since the pandemic, it has added over 220 million square feet…
Inflation, The Economy, and Commercial Real Estate
In June and July of this year, the Fed raised the interest rate at the fastest pace in forty years: it raised the federal funds rate 75 basis points at each open market committee meetings. Why did it do so, and what do its actions and current economic data say about the economy? This report will investigate and answer these questions, as well as explore the thinking that is guiding the Fed’s policies and explain…
2022 Q2 Economic Reports
GDP GROWTH: TRENDING IN Q2 2022 The U.S. economy contracted for the second straight quarter as a tightened monetary policy and high inflation took more steam out of consumer spending and businesses trimmed inventories. The Commerce Department said the nation’s gross domestic product – the value of all goods and services sold – fell by an 0.9% annualized rate in the second quarter. The new reading coupled with the 1.6% first-quarter decrease means the economy…