CLOSE X

Register - if you don't have an account

Yes! Sign me up for Global Property Guide's fortnightly email newsletter.


Login - for registered users

Forgot Password?
Explore destinations
continent map couldn't be loaded Pacific Europe & Russia North America Latin America Asia Africa Middle East Caribbean

 



IPIN Global
Property Investment

IPIN Global offers members the ability to generate investment returns in all market conditions by investing in traditional, unique and innovative real estate related solutions. IPIN works with all types of investors and investment groups providing a diverse selection of expertly researched investment vehicles across...more

My company
IPIN Global

ON GPG


Economic growth will sustain US industrial property demand

Dec 18, 2012 | 0 Comment(s)


Economic growth will sustain US industrial property demandProperty investment will continue in the US industrial real estate sector, with economic growth and an increase in global trade helping to sustain demand. According to the CBRE Group, Inc, warehouse and distribution space market segments will continue their recovery into 2013, with availability rates falling to 12.2 per cent across the country. By the end of 2014, this will reduce further to 11.3 per cent.

Latest industry property figures show that in the penultimate quarter of the year, availability of stock in the US stood at 13.1 per cent. This is a marked improvement from the Q2 2010 peak of 14.6 per cent. The CBRE claim this improvement has been helped by the absence of new industrial facilities being built. Industrial construction has slowed over recent years, as rent growth has not been strong enough to support it. By the end of the year, only 41 million square feet of warehouse and distribution space is expected to be constructed. This is considerably below pre-recession historical norms of approximately 150 million square feet per annum.

However, the rate of construction is likely to change in 2013, with rental growth gaining momentum. It is predicted that next year rents will rise to more than three per cent from the 2.4 per cent rate recorded this year. This will increase to nearly five per cent in 2014. According to the CBRE, this means that industrial rents will grow above the rate of inflation in 2013 for the first time since 2006.

Arthur Jones, senior managing economist, CBRE econometric advisor, stated: "US industrial markets continue to struggle against a residual overhang of space stemming from the last recession and weak economic fundamentals, which has limited demand. Nevertheless steady absorption over the past two years has finally reduced available space to the point where property owners in select markets can now command higher rents. While economic and fiscal policy uncertainty continues to constrain demand, we expect the recovery of industrial real estate to accelerate over the next two years."






Market Analysis - USA
Time series for residential property
 
House price index, US
Price/Rent Ratio: 23 yrs
Latest Country Analysis
News & Discussion
Manhattan Residential Market Report Q4 2013 - Brown Harris Stevens

PROPERTY RECOMMENDATIONS

 
Download free Global Property Guide reports Sponsor a property investment report

Our Newsletter

 
Fortnightly updates from the global property arena directly to your inbox.

Manage subscriptions
Chinese property buyers and Asian buyers, there is great property for high net worth Chinese buyers on Juwai.com

Which parts of the world are most attractive for property investment today?

Click here to download our FREE Property Recommendations Reports!

Close Me