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Industrial Report

United States

Report | North America Industrial Outlook - Q3 2010

Summary

Leasing activity is up in many markets across North America, but job growth has not substantially improved, and households are still cautious about increasing spending. At the same time, manufacturing and production, which had been leading the recovery, are now beginning to cool as inventories become better aligned with final sales. Although these indicators and others are not pointing to a full reversal of growth patterns, the impact of an economy that is treading water may inhibit some of the expansion in industrial property fundamentals for the balance of the year and into 2011. However, even if the bottom of the industrial market cycle is extended, stabilization remains a healthy alternative to continued declines in demand for warehouse, distribution and manufacturing space.

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