Cushman & Wakefield recently published its 2020 North American Industrial Outlook report.
The brokarge firm forecasts North American industrial absorption in 2020-2021 will be a healthy 459.9 million sq. ft.
Industrial has arguably been the hottest commercial real estate sector in recent years. And signs point to that run continuing at least in the short term of the next two years.
Some highlights from C&W's findings include:
- Supply levels are projected to reach 573.4 million sq. ft. from 2020 to 2021. Nonetheless, vacancy will remain anchored around the 5 percent mark.
- Asking rents are expected to increase by 6.8 percent and reach a new nominal high of $6.95 per sq. ft. 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.
In the following gallery we feature interactive versions of many of the key charts featured in the report along with additional insights from the company.