We use cookies to provide you with a better experience. By continuing to browse the site you are agreeing to our use of cookies in accordance with our Cookie Policy.
  • ::COVID-19 COVERAGE::
  • INDUSTRY PRESS ROOM
  • SUBMISSIONS
  • MEDIA FILE
  • Create Account
  • Sign In
  • Sign Out
  • My Account
Free Newsletters
  • MAGAZINE
    • Current Issue
    • Archives
    • Digital Edition
    • Subscribe
    • Newsletters
  • STRATEGY
  • GLOBAL
  • LOGISTICS
  • MANUFACTURING
  • PROCUREMENT
  • VIDEO
    • News & Exclusives
    • Viewer Contributed
    • Upload your video
  • BLOGS & MORE
    • White Papers
    • Webcasts
    • Events
    • Blogs
      • SCQ Forum
      • Reflections
    • Mobile Apps
  • MAGAZINE
    • Current Issue
    • Archives
    • Digital Edition
    • Subscribe
    • Newsletters
  • STRATEGY
  • GLOBAL
  • LOGISTICS
  • MANUFACTURING
  • PROCUREMENT
  • VIDEO
    • News & Exclusives
    • Viewer Contributed
    • Upload your video
  • BLOGS & MORE
    • White Papers
    • Webcasts
    • Events
    • Blogs
      • SCQ Forum
      • Reflections
    • Mobile Apps
Home » Demand rises for logistics and industrial space in the Americas
Forward Thinking

Demand rises for logistics and industrial space in the Americas

December 5, 2016
Supply Chain Quarterly Staff
No Comments

In spite of the overall sense of economic uncertainty—both globally and regionally—demand for industrial and logistics properties in the Americas continued to rise in the third quarter of 2016, according to a recent report from the commercial real estate firm CBRE. "Americas Industrial & Logistics Trends Report," which came out in November, is based on a survey of more than 950 CBRE industrial brokerage and investment professionals in the Americas.

In the United States, vacancy rates dropped to 5 percent and availability fell to 8.4 percent, according to the report. Part of the reason vacancy rates have dropped is that leasing demand is outpacing new construction, making supply tight. The majority of that demand is being driven by companies in the e-commerce, third-party logistics, and food and beverage industries, according to the report. As a result of this demand, asking rents have increased by 1.7 percent in the third quarter and 5.2 percent year over year. Class-A distribution space is particularly tight, with many markets reporting vacancy rates below 2 percent.

Meanwhile, in Canada national availability has held steady at 5.5 percent, with some areas seeing more demand than others. For example, Toronto and Vancouver have record-low property availability, due in part to land constraints, according to CBRE. Calgary and Edmonton, on the other hand, are seeing record-high availability, perhaps due to disappointing manufacturing performance in the country.

This is in sharp contrast to Mexico, which continues to see increased manufacturing output and strong demand for industrial and logistics property, particularly in Mexico City.

In contrast to other parts of the region, vacancies are still quite high for logistics and industrial space in Brazil, especially around São Paulo. The city, which is Brazil's financial center, has seen 4.5 million square feet of industrial space added to the market while rents have dropped by 5.9 percent year over year.

Strategy
  • Related Articles

    Demand for industrial space remains strong

    Consumer sector and e-commerce to drive warehouse space demand in 2020

    Food & beverage companies claim growing share of warehouse space as consumers demand grocery home delivery

Recent Articles by Supply Chain Quarterly Staff

Reports: Outlook calls for stronger supply chains

Gartner: 4 ways to compete with industry disruptors

Survey reveals there’s plenty of room for improvement in e-commerce fulfillment

You must login or register in order to post a comment.

Report Abusive Comment

Most Popular Articles

  • Will this be the decade of supply chain sustainability?

  • The 3PL industry: time to reset

  • The four characteristics of a customer-centric supply chain

  • Five principles for creating a supply chain foreign exchange risk mitigation strategy

  • Supply chain resiliency starts with supplier mapping

Featured Video

Be8de8b1 9bd3 48d6 9400 0bf476fd1f5d

Optimization Through Lean Management 

Viewer Contributed
Uncertain times can put a tremendous strain on your business’s people, processes and supply chains. However, operations can mitigate some of these factors by adopting lean management principles and instilling a culture of continuous improvement. Raymond Lean Management Manager of Solutions and Support Centers Keith...

FEATURED WHITE PAPERS

  • The Top Supply Chain Pains That You Should Address For a Healthier 2021

  • Research Report: New Rules for Supply Chain Insights, Collaboration and Overall Resiliency

  • Logistics 2030 – Navigating a Disruptive Decade (Year 2 Report)

View More

Subscribe to Supply Chain Quarterly

Get Your Subscription
  • SUBSCRIBE
  • E-NEWSLETTERS
  • ADVERTISING
  • CUSTOMER CARE
  • CONTACT
  • ABOUT
  • STAFF
  • PRIVACY POLICY

Copyright ©2021. All Rights ReservedDesign, CMS, Hosting & Web Development :: ePublishing