Rising Demand, Shrinking Supply Begins to Stabilize Warehouse Rents
Steady Recovery Tempered by Challenging World Events, Rising Oil Prices and Ongoing Housing Weakness
By Randyl Drummer
May 4, 2011
The leasing market for U.S. industrial real estate continues to show improvement but is not yet on fire. Rent declines are decelerating as consumer spending picks up, available warehouse and distribution space is absorbed, and companies emerge from the recession in growth mode. That’s the consensus of CoStar analysts, corroborated by recent reports from executives at the world’s two largest warehouse and distribution operators, ProLogis (NYSE: PLD
) and AMB Property Corp. (NYSE: AMB
).The U.S. just recorded its fourth straight quarter of positive absorption, posting 27 million square feet in the first quarter, compared to a negative 15 million square feet in first-quarter 2010, said Jay Spivey, CoStar director of analytics, during the research firm’s First Quarter Industrial Outlook and Review.
Read more of the CoStar article here.