BOSTON– Cushman & Wakefield is bullish on North American industrial real estate market, predicting a healthy 459.9 million square feet absorption in 2020-21.
“The North American industrial markets are seeing large rent growth across the board. In Boston, we anticipate rent growth of more than 10% from 2020 to 2021 with the biggest gains expected in the most strategic locations,” said Paul Leone, executive director at Cushman & Wakefield. “Our industrial team expects continued momentum through 2020 with numerous projects in the works.”
The report said that economic indicators, with strong links to industrial fundamentals, point to continued growth in 2020 and 2021.
“Industrial has been the investors’ darling in recent years, and there is no indication of this love affair coming to an end any time soon,” according to the report from Cushman & Wakefield.
Over the next couple of years, Cushman & Wakefield expects industrial market to remain one of the leading product types to watch. Here are some facts:
- Supply levels are projected to reach 573.4 msf from 2020 to 2021. Nonetheless, vacancy will remain anchored around the 5% mark.
- Asking rents are expected to increase by 6.8% and reach a new nominal high of USD $6.95 psf by year-end 2021.
- Trade policy remains the most fluid aspect of the near-term outlook. The ratification of USMCA in the U.S. and the agreement on a Phase One deal between the U.S. and China are positive developments.
“We expect underlying industrial market liquidity to continue to grow as investors seek to deploy record levels of capital with an increasingly favorable allocation directed towards industrial assets,” the report said.
For a complete view into economics and trends affecting the North American Industrial market, read the full report.