The industrial property market in the U.S. appears to be slowing somewhat amid economic uncertainty, but in-place rents on current leases are rising, average sale prices continue to increase, and industrial property values – though lower – are still higher than for most other property classes.
These are the findings of Yardi Matrix's national industrial report for May, which reflects a cautious environment in the sector.
The report notes that occupier demand and absorption are cooling because of the effect of inflation on consumer spending and recession fears. The e-commerce and brick and mortar retail segments are trying to conserve cash and reduce space needs. "Demand remains well to the positive side, but it is braking somewhat, particularly among consumer-related businesses," the report says.
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