ProLogis (PLD), one of the leading global providers of distribution facilities, has recently released a report on the industrial property markets in the U.S. and Canada.
The research report is based on inputs from varied sources, including ProLogis’ in-depth market study, brokerage reports, and contributions from data providers. The report covers the top 31 distribution property markets in the U.S. and Canada and provides valuable insights of the industry during the first half of 2009.
The report divulges that the average vacancy rate for bulk distribution space across major markets increased to 10% in the second quarter of 2009, compared to 7.6% at mid-year 2008. Furthermore, net absorption decreased to negative 56 million square feet during the first half of 2009, compared to positive 34 million square feet in 2008. The report also revealed that new starts declined to 5 million square feet during the first half of 2009 vis-à-vis 92 million square feet in 2008.
The decrease in market fundamentals was primarily due to the continued economic downturn. However, as the rate of decline moderated during the second quarter of 2009, ProLogis believed that the U.S. economy was poised for a recovery in the later half of the year. The real estate market, which lags the economic cycle, is however expected to recover later in the next year.
ProLogis owns and manages interests in over 2,500 distribution facilities, service offices, and properties spanning 475 million square feet of space (including properties under development). As of Jun 30, 2009, the company had 200.5 million square feet of direct-owned industrial properties, 81.5% of which was located in North America, 14.2% in Europe, and 4.3% in Asia.
Read the full analyst report on “PLD”
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