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Leasing Demand Still Outpacing New Construction

by Morgan Bell | Nov 30, 2016

CBRE reported user demand in the Americas industrial and logistics market accelerated in Q3 2016 and was led by the U.S., where the vacancy rate dropped 10 basis points (bps) to 5 percent and availability by 20 bps to 8.4 percent. As has been the case each quarter since Q3 2010, U.S. leasing demand, as measured by net absorption, significantly outpaced new construction.

Latin America is seeing 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, are seeing 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.

Canadian markets have been a bit choppy with record-low availability rates in Toronto and Vancouver seeing additional decline, but availability rates in markets like Calgary and Edmonton reaching record highs. Read more.

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