• Growth in net absorption of Americas industrial & logistics space continued for the 28th consecutive quarter in Q1, but slowed substantially after near-record user demand last year.
  • Although net absorption in the U.S. decreased both quarter-over-quarter and year-over-year, the vacancy rate fell by 10 basis points (bps) to 4.8% and the availability rate was up slightly at 8.0%.
  • For the first time since Q3 2010, leasing demand fell short of new construction, though the gap between the two was narrow and had a negligible effect on overall availability.
  • As a result of the tight supply, the net rent index increased by 1.6% in Q1 and 6.7% year-over-year to $6.24 per sq. ft. —the highest level since CBRE Econometric Advisors (CBRE EA) began tracking this metric in 1980.
  • Driven by growth in the national economy, the Canadian industrial market has strengthened with sharp gains in user demand and record-low vacancy rates in Toronto and Vancouver.
  • Economic uncertainty in Mexico caused a slowdown in the industrial market, with user activity tapering slightly in the quarter and rents declining.
  • Despite some global and domestic economic uncertainty, the industrial real estate market continues to expand in most parts of the Americas.