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Industrial Outlook

United States

Report | North America Industrial Outlook - Q1 2013

Summary

More development, absorption on par with pre-recession levels and higher asking rental rates is the collective story for the U.S.  Active tenant requirements for modern space exceed supply, meaning construction starts will increase and the trickledown effect to B-caliber space is here to stay.
 
China's manufacturing hourly wages are nearly on par with Mexico's. This gives Mexico an advantage when factoring in lower shipping costs and swifter product delivery to the United States; nearshoring is back.
 
Speculative development is increasing in key Canadian markets thanks to ongoing demand from big-box tenants-a trend that is synonymous with the U.S. The housing sector, while sluggish and with policy-concerns, had a second consecutive month of building growth.

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