Americas Industrial and Logistics Trends Report November 2016
- User demand in the Americas industrial & logistics market accelerated in Q3 2016 and was led by the U.S., where the vacancy rate dropped 10 basis points (bps) to 5% and availability by 20 bps to 8.4%.
- As has been the case each quarter since Q3 2010, U.S. leasing demand (as measured by net absorption) significantly outpaced new construction.
- Canadian markets have been a bit choppy with record-low vacancy rates in Toronto and Vancouver seeing additional decline, but availability rates in markets like Calgary and Edmonton reaching record highs.
- Latin America has seen a similar pattern with the core Mexican markets showing strong user demand and positive fundamentals while the Brazilian markets, struggling to emerge from a recession, have seen users return, but not enough to slow rising vacancies and slumping rents.
- Despite some global and domestic economic uncertainty, the industrial real estate market continues to expand in most parts of the Americas.