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Hopeful news from the US Logistics Market

posted Sep 15, 2010, 3:53 AM by Joan Miquel Joaquim   [ updated Jun 20, 2011, 2:10 PM by X Juez ]
In the coming days, the research team of  LogisPark will post to the LinkedIn group "LP ONE World" a complete report of the behavior of the investments markets for logistics real estate  in New York (NY) and Los Angeles (LA), in "Big boxs" products (over 10,000 m2) .

Let me advance some key points of this research report:

Analysis US:
  • First quarter with positive absorption since 2007.
  • Delay of a semester from the economic recovery start
  • Increase in the new supply, breaking the downward trend since 2006
  • Decrease in stocks of the market compared with the previous quarter.
  • Vacancy Rate Decreased, breaking the upward trend started in 2008
  • Yields have started to fall, for first time since 2008
  • Nevertheless, rents continue to decline

Analysis Los Angeles
  • The absorption in LA has been Positive, with worse figures at Central (obsolete stock).
  • From last quarter of 2009, inventory of available m2 has been stabilized with a very slight growth since then.
  • Since the fourth quarter of 2009 begins a significant decline in Vacancy Rate, which remains constant during the following quarters.
  • The Availability has been steadily increasing, despite having experienced a significant decline in the first quarter of 2010 was followed by a large increase in the second quarter, but not reaching previous levels.
  • The LA market activity has progressively increased, experiencing a slight fall in the last quarter of 2010.
  • For the first time since a long time, the absorption of the market has been positive during the second quarter of 2010, indicating a improvement on logistic and industry market. Let's wait to see the trend of the following semesters to see if it holds and we can confirm this recovery.
  • Income levels continue to fall semester to semester, despite the improvement in other indicators.
  • Closely linked to income levels, selling prices have also continued to decline over the past year.

Analysis NY (New Jersey)

  • For the first time in a long time, and following the trend across the country, the vacancy rate has slowed in the second quarter of 2010.
  • The absorption has been positive this last semester starting a trend that we hope will continue from now on, which would indicate we are already at the beginning of the recovery of industrial and logistics market in the USA.
  • If we study separately the markets of Northern NJ and Central NJ, we note that the different sub-markets follow similar trends, like in the rest of the country.


J. M. Joaquim