INDUSTRIAL OVERVIEW
MARKETS AWAIT TARIFF CLARITY
Net absorption of industrial space increased in the third quarter across North America but demand was weak and failed again to keep pace with the supply of new buildings, while tenant growth remained hobbled by tariff concerns and interest rates.
In the United States, following 8.1 million SF of negative absorption in the first half, third-quarter tenant growth totaled 31 million SF. That was off 41% from a year ago and the 22.8 million SF year to date growth was off 70% compared to the first nine months of last year.
OFFICE OVERVIEW
DEMAND RETURNS TO UNSTEADY MARKETS
Tenant demand returned to North American markets in the third quarter, reversing earlier declines as the uncertain office recovery struggles with fits and starts against a backdrop of tariffs and looming AI.
There were 12 million SF of net absorption in the United States in the third quarter. The surge brought year-to-date net growth to negative 4.8 million SF, the lowest total through Q3 since the Covid lockdown. The overall vacancy rate ticked downward from Q2’s record high to settle at 14.1%…Read More