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…