AMB Property Corp. (AMB), a leading real estate investment trust (REIT), recently unveiled a new research report on the outlook for industrial rent growth in the U.S. The in-depth study analyzed the relationship between rent growth and market fundamentals, and concluded that improving economic conditions will eventually fuel a recovery in industrial real estate and consequently raise rents to more sustainable levels.
The study evaluated the current U.S. industrial rents, which were down 20%-30% from the peak values in 2008. However, growing customer interests in new build-to-suit development projects across the country suggested that market fundamentals were gradually improving. In addition, leasing decisions that were earlier postponed due to volatility in the markets were gradually coming off the shelf. Consequently, rent levels are expected to return to more normal levels.
The research report also revealed that demand for industrial real estate was rebounding thereby, offering a positive outlook for 2010 and beyond. Furthermore, consensus forecast for global trade and production indicated that over 500 million square feet of demand could be realized globally in the next three years, which in turn could drive the availability rate to equilibrium levels in 2012.
AMB is a leading industrial real estate company, with a strong portfolio of warehouses and distribution facilities in some of the busiest distribution markets in the world. AMB’s properties are located in supply-constrained infill markets at close proximity to airports, seaports and ground transportation facilities, which enable the swift distribution of customers’ products.
Read the full analyst report on “AMB”
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