GDP GROWTH: 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 Federal Reserve is trying to stifle by raising interest rates. Spending on travel, restaurants…
2023 Q1 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…
2022 Q4 Economic Report
GDP GROWTH: The U.S. economy expanded at a solid annual rate of 2.9% in the fourth quarter of 2022, down from 3.2% at the end of Q3, according to the Commerce Department’s Bureau of Economic Analysis. Fourth-quarter growth was more than expected and capped a year of economic slowing that reflects a return to a more normal pace of growth. Nevertheless, concern continues that growth may turn negative in 2023. The increase in real GDP…
2022 Q4 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…
2022 Q3 Economic Report
GDP GROWTH: The nation’s gross domestic product grew at an annual rate of 2.6% in the third quarter, a reversal from six previous months of decline. Although the Commerce Department data was better than forecast there are expectations the economy will weaken under the strain of high inflation and rising interest rates. There were third-quarter gains in exports, consumer spending, nonresidential fixed investment and local, state and federal government spending. These increases were partly offset…
2022 Q3 North America Market Report
INDUSTRIAL OVERVIEW: HIGH RENT, LOW VACANCY EVERYWHERE North American industrial space availability is tight everywhere while rent growth and property prices remain near or have moved beyond historic highs. Through the third quarter, the United States’ vacancy rate settled at 4%, up 10 basis points from Q2. Average rents increased 11.4% year over year with gains of 19% in Miami, 18.7% in Southern California’s Inland Empire, 16% in Phoenix and 14.6% in Atlanta. In…
2022 Q2 Economic Report
GDP GROWTH: 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 has met the common…
2022 Q2 North America Market Report
INDUSTRIAL OVERVIEW: RECORD LOW SUPPLY, RENT GROWTH Demand for industrial space eased slightly from its record-setting growth of last year but remained strong through for the first half of 2022 as annualized rent growth moved into double digits and the overall vacancy rate fell to 3.9%, a record low. Net absorption through June totaled 192.2 million SF. It was the second highest two-quarter total on record and more than the 170 million SF of tenant…
Life Science: Thriving as Never Before
Life science real estate, along with data centers and industrial real estate, has thrived enormously over the past two years of the pandemic. As the world economies transition to a new phase, where COVID-19 is understood to be in an endemic state, there are no signs that demand for this fast-growing niche in commercial real estate is diminishing. In fact, the demand for lab space is only intensifying. This report will identify and explain the…