2021 north american industrial outlook

2021 NORTH AMERICAN INDUSTRIAL OUTLOOK

EXECUTIVE SUMMARY

For a deep dive into local market fundamentals click here.

Industrial demand is booming, but so is supply

Pent-up demand story forming— expect economic surge in back half of 2021

Fundamentals to continue generating solid rent growth throughout the next few years

Global trade expected to rise as economic growth accelerates and trade tensions ease, boosting demand

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https://www.cushmanwakefield.com/en/united-states/insights/us-marketbeats

NORTH AMERICAN INDUSTRIAL OUTLOOK 2019

4 / CUSHMAN & WAKEFIELD

2021 NORTH AMERICAN INDUSTRIAL OUTLOOK

MARKET OVERVIEW The Industrial Market is Still Hungry for Space The forecast for North American industrial absorption from 2021 to 2022 is a healthy 481.3 million square feet (msf). New supply—which has surpassed demand two years in a row—will maintain this trend over the next two years. New deliveries are projected to reach 697.3 msf of product from 2021 to 2022. Nonetheless, North American vacancy will remain low, ending 2022 at 6.2%—an

increase of only 130 basis points (bps) over year-end 2020. Despite the forecasted uptick, North American vacancy will remain nearly on par with its 10-year average (2012-2021) of 6%. Average net asking rents for classes of industrial product will rise to a new nominal high of $6.97 per square foot (psf) at year-end 2022. Supply-side constraints, such as onerous municipal approval processes, will continue to constrain supply growth in Canada where overall net rents will remain the highest in North America at USD $10.19 psf by the close of 2022.

NORTH AMERICAN SUPPLY AND DEMAND

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

(200)

(100)

-

100

200

300

400

New Supply (MSF) Net Absorption (MSF) Overall Vacancy (%)

MSF

Source: Cushman & Wakefield Research

NORTH AMERICAN INDUSTRIAL OUTLOOK 2021 / 5

The economic recovery, progress in global trade and the accelerated buildout of e-commerce and 3PL last-mile facilities, fulfillment centers, and bulk warehouses will reinforce demand for industrial real estate. For the eighth consecutive year, net absorption in the U.S. will exceed 200 msf in 2021; we anticipate this streak will extend through 2022. In Canada, industrial markets will maintain their longest uninterrupted period of positive net absorption through 2022 with a near record high in 2021. Canadian industrial markets are forecast to register 38.1 msf of net absorption from 2021

to 2022. Over the next two years, Toronto and Vancouver are expected to account for over 71.8% of Canadian occupancy growth, but Ottawa will grow most rapidly (demand relative to inventory) over the same period. Despite the extremely tight vacancy rates in Mexico, positive net absorption will continue with Mexico City approaching 9 msf of absorption by 2022.

New leasing activity in Mexico City continues to be strong. But with one of the lowest vacancy rates among North American markets in 2020, stronger occupancy gains will be limited to new construction deliveries

1 Dallas/Ft. Worth, TX 47.0

2 Chicago, IL 31.4

3 Atlanta, GA 30.2

4 Inland Empire, CA 20.1

5 Houston, TX 21.8

NET ABSORPTION (MSF)2021-2022

RANK MARKET MSF

TOP 5 MARKETS FOR DEMAND TOP 5 MARKETS FOR SUPPLYDELIVERIES (MSF)2021-2022


2 Chicago, IL 34.3


4 Atlanta, GA 29.9

5 Memphis, TN 26.0

RANK MARKET MSF



coming to market. This is also true for the other main industrial markets in Mexico, such as Monterrey, Tijuana and Ciudad Juarez, where availability rates decreased significantly throughout 2020. Demand for industrial space in Mexico will benefit from the U.S.-Mexico-Canada Agreement (USMCA) that went into effect mid-year 2020. As an example, the auto industry will create additional real estate demand as well as jobs for the sector. The USMCA now requires that 75% of a vehicle’s components be manufactured within North America, up from around 60% under the North American Free Trade Agreement (NAFTA). It also now mandates that 70% of a vehicle’s aluminum or steel come from the three countries. These changes will help bolster manufacturing and logistics demand throughout North America.

Demand in the North American industrial market is geographically dispersed, especially throughout the United States. The top 10 markets for demand include at least one market from the four Census regions tracked in the U.S. industrial market (Northeast, Midwest, South and West). Coming in at the number one spot with 47 msf of positive absorption through 2022 is the Dallas/Ft. Worth market which experienced explosive growth over the past decade of expansion, significantly outpacing the next three top markets Chicago, Atlanta and the Inland Empire, whose forecasts are over 30 msf. Though this is nothing to be wary of, these four markets alone are anticipated to make up 29% of demand for North America from 2021 to 2022. Regionally, the majority of demand will come from the South region in the U.S., accounting for 38% of demand, followed by the West and the Midwest regions. With port proximity, rail access and established border markets, the South will continue to lead the North American industrial markets.

Demand in the North American industrial market is geographically dispersed, especially throughout the United States.


NORTH AMERICA AS A PERCENT OF INVENTORY

Source: The CoStar Group (for select markets only), Cushman & Wakefield Research

More Supply Means More Options North American industrial markets are projected to deliver 697.3 msf of new product by year-end 2022. Over 92% of the space delivered will be in the U.S. where the market has been strapped for quality product over the past few years. Despite supply being forecasted to outpace demand for the next two years, the pipeline will remain elevated in primary industrial markets, port-proximate markets (both intermodal and maritime), and in markets with dense or fast-growing populations. Up until Q1 2019, supply had not outpaced demand; but this trend has started to change with investors questioning whether the U.S. would enter a period of overbuilding while Canadian markets and Mexico City remain stable. The short answer is it did not happen in 2020, and likely will not in 2021. The amount of space that has been under construction in North America exceeded 365 msf during 2020—the largest amount of space ever under construction, and most of that space was in the U.S. which averaged a pipeline of 335.9 msf on a quarterly basis. The pipeline may sound concerning with the level of demand not keeping up, but the circumstances around the deliveries are fundamentally better than in the past. Pre-leasing rates indicate this will continue, plus, the composition of supply matters. A much higher percentage of projects in the pipeline

are build-to-suit. As a result, we anticipate a slow rebalancing in market conditions with a gradual uptick in vacancy. Regionally, the South in the U.S. again comes in first for the largest number of deliveries, forecasted to deliver nearly 225 msf of new construction by year-end 2022. However, Mexico City is expected to deliver the most space as a percent of total inventory at 5%.

North American demand overall is expected to trail supply by about 125 msf in 2021 and 90 msf in 2022, causing vacancy rates to rise modestly from current record low levels. Mexico City, however, will see a 90-bps decrease in vacancy from 2020 to year-end 2022, bringing the rate to 2.1%. Canadian markets will likely see only a 30-bps increase in vacancy due to a larger pipeline of 44 msf expected to deliver over the next two years. Vacancy in the U.S. will surpass 6% for the first time since 2015 by year-end 2021, coming in at 6.1%, and is likely to increase by an additional 50 bps during 2022 to 6.6%. Most markets across the three countries remain starved for quality space, and as more supply enters the market, rental rates are expected to continue increasing, albeit at a slightly slower pace. With options becoming more plentiful, tenants can afford to be picky when it comes to site selection, forcing landlords to slow increases in rental rates to remain competitive.

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2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020F 2021F 2022F

Absorption as a % of Inventory Delivieries as a % of Inventory


Rents Will Reach New Highs North American industrial asking rents are expected to reach a new nominal high of USD $6.97 psf by year-end 2022, and the growth will be broad based across many markets in all regions. Across North American industrial markets, 29 markets are forecast to register more than 10% rent growth from the beginning of 2021 to year-end 2022, with two of the top three being Canadian: Toronto at 25% and Vancouver at 23.9%. All but nine (of the 85) markets tracked for this report will see positive rent growth through 2022. Other North American cities that will post some of the strongest rent growth will be those with the highest demand and quality supply such

as Dallas/Ft. Worth, Inland Empire, Atlanta, Chicago, PA I-81/I-78 Distribution Corridor, Indianapolis and Central New Jersey. The demand for newer product will command a premium and gives landlords the option to raise prices for the most competitive tenants. But also expect to see higher rents among supply-constrained markets, especially those close to ports (both inland and maritime) such as Los Angeles, Seattle, San Francisco Peninsula and Orange County. The markets being fed by the West and East Coast ports or the intermodal hubs in the middle of the country are where U.S. rent growth will be strongest due to limited supply and desirable location.


Source: Cushman & Wakefield Research

NORTH AMERICAN RENT GROWTH

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Asking Rents (Q4) (USD/SF) Rent Growth (USD, %)


COVID-19 & THE ECONOMY2020 was rough, but is setting the stage for a global reboundCOVID-19 disrupted everything in 2020. And with its onset more than one year behind the globe, and the arrival and approval of multiple viable vaccines, the stage for a rebound in the global economy is being set. As North America scales up access to several vaccines, and warmer weather more easily allows for businesses to operate (particularly outdoors), even under social distancing protocols, economic momentum is likely to build throughout the spring. Not only that, but a few other forces are liable to stimulate demand in the economy: 1) inventory draw-downs in 2020 will need to be replenished, 2) pent-up demand for tourism and other services will start to be unleashed, 3) global demand will support the budding trade recovery and 4) the ability to congregate again will mean that these trends benefit a wider segment—possibly even the totality—

of the global and regional economy. Indeed, the next few years may be defined by a period of strong, synchronized global growth similar to 2017. Once the pandemic largely subsides, that is.

Supporting the near-term recovery are three key features: less restrictive lockdown measures (which immediately led to a jump in economic growth across the globe but have since contributed less momentum), demand from regions that have had more relative success in containing COVID-19, and policy support. For example, bilateral merchandise trade flow data from the International Monetary Fund show that exports from Canada are down 14% year-to-date (January through August). For Mexico, they are down 17% and for the U.S., 16%. But, when looking at exports to mainland China, where containment of the virus has allowed for a much faster return to normalcy, Canada’s exports are only down 1%, Mexico’s are up 8% and the U.S.’s are only down 7%.

REAL GDP FORECASTSAnnual growth rate

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Canada Mexico United States North America Global

2020Q4-2022Q4 CAGR

2017 2018 2019 2020 2021 2022

3.4% 4.2% 4.0%3.3% 4.4%

Source: Oxford Economics, Cushman & Wakefield ResearchNote: Country real GDP figures based on data in local currency units. North American real GDP figures in PPP units.



Policy actions holding up economy, for nowNorth America’s near-term recovery is being supported by policy measures that have been disproportionately large in the U.S. and Canada relative to Mexico. The U.S. passed five major pieces of legislation in response to COVID-19, totaling over $4 trillion of direct and indirect stimulus, or 19.4% of pre-COVID-19 GDP. Canada has provided $320 billion of such support for its economy, representing 18.4% of its pre-COVID-19 GDP level. Despite Mexico’s somewhat lackluster fiscal response totaling $9.4 billion, or 0.7% of its pre-COVID-19 GDP, it has indisputably benefitted from its northern neighbors’ actions through regional linkages. Further, all three countries’ central banks substantially altered policy in response to the pandemic.

Unconcerned with inflation, almost all major central banks went on offense in early 2020. The U.S. Federal Reserve’s Federal Open Market Committee (FOMC) lowered its target rate to a range of 0% to 0.25% while the Bank of Canada lowered its rate to 0.25%. A rapid increase in quantitative easing was accompanied by the deployment of multiple credit facilities to stabilize financial market conditions. The Federal Reserve’s balance sheet grew from $4.2 trillion at the end of February to $7.2 trillion by mid-

June, an expansion of 71%. It has remained roughly stable since then. The Bank of Canada’s balance sheet expanded from C$121.5 billion to over C$500 billion over the same time period, and was at C$544.8 billion, an increase of nearly 350%, as of mid-December. Because each country’s economy is operating so far below its potential, and with aggregate demand subdued by hard-hit sectors, few central banks are worried about reversing course to fight inflation. Indeed, the outlook for interest rates has softened considerably from pre-COVID-19, supporting inflows of capital to yield-producing assets, such as commercial real estate.

Mexico’s central bank, Banco de México, had a substantially different starting point; it had raised interest rates to 8.25% by mid-2019 to combat falling currency values and high inflation. Having started to lower rates in August 2019, it quickly accelerated its easing and lowered the target interbank rate from 7.0% to 4.25% over the course of 2020 in a more gradual set of rate cuts than Canada and the U.S undertook. This is in part due to its strict inflation mandate, as Mexico’s core inflation has remained above 3% throughout 2020. Still, the current rate is below the estimate-neutral rate, meaning that monetary policy conditions are expansionary.

Chart 3: Uneven Recoveries

FISCAL SUPPORT AS A PERCENT OF 2019 GDPPolicy Buoys 2020 Economy

0 2 4 6 8 10 12 14 16 18 20

Mexico

Canada

U.S.

Direct Fiscal Support Liquidity Support

Source: Moody’s Analytics


Stronger, unique recovery to accelerate in 2021With accommodative policy bridging the economic chasm and inoculation currently ramping up, it is likely that 2021 will be a turning point, particularly in the stability of the outlook. It is assumed that current and forthcoming vaccines will be successful in not only preventing COVID-19 outbreaks, with obvious economic repercussions, but that this also allows for more sustainable private sector growth, having gradually decoupled from the persistently high levels of uncertainty of 2020. And while growth will no longer be as closely linked to the virus itself and its concomitant policy responses, COVID-19 will nonetheless influence the foundation of the next expansion.

One such theme is that of an uneven recovery. Already this is being seen across industries and across wage tiers—with those hurt most by social distancing seeing the least robust improvements. This has been particularly true of the tourist-centric and service-oriented industries as well as those in low-wage jobs across all sectors. In Mexico, the tertiary sector, which employs about three-fifths of workers, has also been hard hit.

An uneven recovery is even taking hold within the industrial segment of the economy, with manufacturing, wholesale and various forms of transportation employment all still well below pre-COVID-19 peak levels. These sectors are sensitive to flows of inputs and final goods that trend with global demand, manufacturing, and trade activity. Although global growth is expected to rebound in 2021, growing by 5.1% according to a consensus of forecasts,1 it is not expected to recover until the second half of 2021 (and that is only to pre-COVID-19 levels, not to the level that would have been achieved in the absence of a global recession). The World Trade Organization estimates that world trade will grow by 7.2%

1 The average of the International Monetary Fund, the Organi-zation for Economic Co-operation and Development, Oxford Economics and Moody’s Analytics.

North American demand overall is expected to trail supply by about 125 msf in 2021 and 90 msf in 2022, causing vacancy rates to rise modestly from current record low levels.



MEXICOEMPLOYMENT INDEX: JAN 2020 LEVEL = 100

U.S.YR/YR % CHANGE IN EMPLOYMENT BY WAGE TIER

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105

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7/1/

2020

8/1/

202

0

9/1

/20

20

Primary and Secondary Sectors Tertiary Sector

-30%

-25%

-20%

-15%

-10%

-5%

0%

5%

Dec

-19

Jan

-20

Feb

-20

Mar

-20

Apr

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May

-20

Jun-

20

Jul-

20

Aug

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High-Wage Mid-Wage Low-Wage

CANADAPRE-COVID-19 PEAK TO TODAY % CHANGE IN EMPLOYMENT

Source: Statistics Canada, Instituto Nacional de Estadística Geografia e Informática (INEGI), Encuesta Nacional de Ocupación y Empleo (ENOE), U.S. Bureau of Labor Statistics, Moody’s Analytics

-25% -20% -15% -10% -5% 0% 5%

Accommodation and food servicesInformation; culture and recreation

Business; building and other support servicesAgriculture

Transportation and warehousingConstruction

Other servicesServices-producing sector

TotalGoods-producing sector

TradeHealth care and social assistance

ManufacturingPublic administration

UtilitiesForestry; fishing; mining; quarrying; oil and gas

Finance; insurance; real estate and leasingEducational services

Professional; scientific and technical services

UNEVEN RECOVERY


in 2021, only partially offsetting the loss of activity in 2020.2 The global recovery is expected to be led by the East, with China and India seeing faster improvements in industrial production and trade than the West. This suggests industrial demand drivers will remain below their potential in 2021 due to a lack of a comprehensive recovery across all sectors. More diverse demand should return in 2022.

The strength in industrial real estate throughout the pandemic has been a function of pulling forward e-commerce-related demand due to simple necessity. The pandemic-induced surge in online shopping created a bifurcation in industrial employment, with warehousing and final-mile employment reaching record levels in the U.S. In Canada, warehouse and final-mile employment has outperformed significantly, only 5% below pre-COVID-19 levels (versus nearly 20% for overall employment). As the growth of e-commerce demand slows from its feverish pace during the height of the pandemic, it will remain a significant source 2 https://www.wto.org/english/news_e/pres20_e/pr862_e.htm

of demand. Importantly, the structural shifts in consumer behavior will also mean that industrial property markets are likely to see healthy demand despite underlying pockets of weakness in the broader labor market.

CONCLUSIONThe necessity to further accelerate the adoption of e-commerce within the economy insulated the industrial real estate sector from the downturns that befell the hospitality, office and retail sectors. This ramping up of the industrial sector to support e-commerce growth will benefit industrial real estate in the near- and medium-term but may also lead to slower growth in 2022 as the sector compensates for overshooting due to the partly unforeseen spike in demand. Given that the global economy is expected to be firing on all cylinders by that time, demand from other segments of the economy is likely to accelerate and offset any e-commerce-specific loss of momentum. Thus, the stage is set for a healthy and evolving demand backdrop.

https://www.wto.org/english/news_e/pres20_e/pr862_e.htm


INDEX

TOP 50 MARKETS FOR SUPPLYDELIVERIES (MSF)2021-2022

Source: Cushman & Wakefield Research, The CoStar Group

*2021-2022 figures are derived from CoStar’s forecasts.


2 Chicago, IL 34.3


4 Atlanta, GA 29.9

5 Memphis, TN 26.1

6 Houston, TX 25.0

7 Indianapolis, IN 21.0

8 Toronto, ON 20.7

9 PA I81/I78 Corridor, PA 20.6

10 Phoenix, AZ 18.3

11 Austin, TX 14.2

12 Kansas City, MO 14.0

13 Vancouver, BC 13.5

14 Central NJ 11.8

15 Philadelphia, PA 11.7

16 Charlotte, NC 10.9

17 Columbus, OH 9.7

18 Norfolk, VA 8.2

19 Miami, FL 7.9

20 Savannah, GA 7.8

21 Baltimore, MD 7.7

22 St. Louis, MO 7.6

23 Los Angeles, CA 7.3

24 Tampa, FL 7.2

25 Cincinnati, OH 7.2

26 Nashville, TN 7.0

27 Denver, CO 6.3

28 Northern NJ 5.8

29 San Diego, CA 5.7

30 Las Vegas, NV 5.7

31 Seattle, WA 5.4

32 San Antonio, TX 5.3

33 Minneapolis, MN 5.2

34 Central Valley, CA 4.9

35 Ottawa, ON 4.6

36 Jacksonville, FL 4.3

37 Salt Lake City, UT 4.2

38 Colorado Springs, CO 4.1

39 Fort Lauderdale, FL 3.8

40 Silicon Valley, CA 3.6

41 DC Suburbs, VA 3.6

42 Lakeland, FL 3.6

43 Reno, NV 3.5

44 Calgary, AB 3.4

45 Louisville, KY 3.2

46 San Francisco Peninsula, CA 3.2

47 Sacramento, CA 2.8

48 Oakland, CA 2.8

49 Orlando, FL 2.5

50 NYC Boroughs, NY 2.5

RANK MARKET MSF RANK MARKET MSF





2 Chicago, IL 31.4

3 Atlanta, GA 30.2


5 Houston, TX 21.8

6 Indianapolis, IN 19.1

7 PA I81/I78 Corridor, PA 19.0

8 Memphis, TN 15.1

9 Central NJ 15.1

10 Kansas City, MO 14.6

11 Toronto, ON 14.1

12 Phoenix, AZ 13.8

13 Vancouver, BC 13.3

14 Austin, TX 9.4

15 Los Angeles, CA 7.2

16 Charlotte, NC 7.1

17 St. Louis, MO 6.6

18 Savannah, GA 6.4

19 Nashville, TN 6.3

20 Silicon Valley, CA 6.2

21 Denver, CO 6.1

22 Philadelphia, PA 5.8

23 Northern NJ 5.8

24 Tampa, FL 5.5

25 Baltimore, MD 5.5

26 San Diego, CA 5.4

27 Norfolk, VA 5.3

28 Central Valley, CA 4.9

29 San Antonio, TX 4.5

30 Cincinnati, OH 4.4

31 Seattle, WA 4.4

32 Jacksonville, FL 4.1

33 Salt Lake City, UT 3.9

34 Montreal, QC 3.9

35 Colorado Springs, CO 3.9

36 Minneapolis, MN 3.9

37 Reno, NV 3.8

38 Louisville, KY 3.7

39 Charleston, SC 3.7

40 Ottawa, ON 3.6

41 Columbus, OH 3.3

42 Fort Lauderdale, FL 3.3

43 Calgary, AB 3.2

44 Las Vegas, NV 3.1

45 San Francisco Peninsula, CA 2.9

46 Miami, FL 2.7

47 Oakland, CA 2.6

48 Sacramento, CA 2.5

49 Orlando, FL 2.5

50 Lakeland, FL 2.4

RANK MARKET MSF RANK MARKET MSF

TOP 50 MARKETS FOR DEMANDNET ABSORPTION (MSF)2021-2022


INDEX

1 Ottawa, ON 19.2%

2 Austin, TX 13.0%

3 Colorado Springs, CO 11.3%

4 Savannah, GA 9.4%

5 Memphis, TN 9.0%

6 Philadelphia, PA 7.4%

7 Indianapolis, IN 7.3%

8 Norfolk, VA 6.8%

9 Charlotte, NC 6.7%

10 Tampa, FL 6.4%

11 PA I81/I78 Corridor, PA 6.3%

12 Vancouver, BC 6.2%

13 Kansas City, MO 6.0%

14 Inland Empire, CA 5.8%

15 San Francisco Peninsula, CA 5.6%

16 Houston, TX 5.5%

17 Phoenix, AZ 5.4%

18 West Palm Beach, FL 5.2%

19 Dallas/Ft. Worth, TX 5.1%

20 Lakeland, FL 4.9%

21 Miami, FL 4.9%

22 Atlanta, GA 4.6%

23 Minneapolis, MN 4.4%

24 Fort Lauderdale, FL 4.2%

25 Jacksonville, FL 4.2%

26 Las Vegas, NV 3.8%

27 San Antonio, TX 3.6%

28 Baltimore, MD 3.5%

29 San Diego, CA 3.5%

30 Reno, NV 3.4%

31 Central NJ 3.3%

32 Nashville, TN 3.2%

33 Columbus, OH 3.1%

34 St. Louis, MO 3.0%

35 Chicago, IL 2.9%

36 DC Suburbs, VA 2.8%

37 Calgary, AB 2.6%

38 Salt Lake City, UT 2.6%

39 Toronto, ON 2.6%

40 Central Valley, CA 2.6%

41 Denver, CO 2.6%

42 Charleston, SC 2.4%

43 Seattle, WA 2.3%

44 Cincinnati, OH 2.1%

45 Orlando, FL 2.1%

46 Northern NJ 2.0%

47 Fort Myers/Naples, FL 1.9%

48 Sacramento, CA 1.9%

49 Fredericksburg, VA 1.8%

50 Silicon Valley, CA 1.6%



TOP 50 MARKETS FOR RELATIVE DEMAND & SUPPLYDELIVERIES AS % OF INVENTORY 2021-2022




1 Ottawa, ON 15.1%

2 Colorado Springs, CO 10.7%

3 Austin, TX 8.6%

4 Savannah, GA 7.7%

5 Indianapolis, IN 6.6%

6 Kansas City, MO 6.2%

7 Vancouver, BC 6.1%

8 PA I81/I78 Corridor, PA 5.9%

9 Dallas/Ft. Worth, TX 5.8%

10 Inland Empire, CA 5.3%

11 San Francisco Peninsula, CA 5.2%

12 Memphis, TN 5.2%

13 Tampa, FL 4.9%

14 Houston, TX 4.8%

15 Atlanta, GA 4.7%

16 Charlotte, NC 4.4%

17 Norfolk, VA 4.4%

18 Central NJ 4.1%

19 Charleston, SC 4.1%

20 Phoenix, AZ 4.1%

21 Jacksonville, FL 4.0%

22 Reno, NV 3.7%

23 Philadelphia, PA 3.7%

24 Fort Lauderdale, FL 3.7%

25 Lakeland, FL 3.3%

26 San Diego, CA 3.3%

27 Minneapolis, MN 3.3%

28 Fredericksburg, VA 3.1%

29 San Antonio, TX 3.0%

30 Nashville, TN 2.8%

31 Silicon Valley, CA 2.7%

32 Chicago, IL 2.7%

33 St. Louis, MO 2.6%

34 Central Valley, CA 2.5%

35 Baltimore, MD 2.5%

36 Salt Lake City, UT 2.5%

37 Denver, CO 2.5%

38 Calgary, AB 2.4%

39 West Palm Beach, FL 2.2%

40 Orlando, FL 2.1%

41 SF North Bay, CA 2.1%

42 Las Vegas, NV 2.0%

43 Northern NJ 2.0%

44 Seattle, WA 1.9%

45 DC Suburbs, VA 1.8%

46 Toronto, ON 1.8%

47 Sacramento, CA 1.7%

48 Miami, FL 1.7%

49 Louisville, KY 1.6%

50 Fort Myers/Naples, FL 1.6%

TOP 50 MARKETS FOR RELATIVE DEMAND & SUPPLYNET ABSORPTION AS A % OF INVENTORY2021-2022

© 2021 Cushman & Wakefield. All rights reserved. The information contained within this report is gathered from multiple sources believed to be reliable. The information may contain errors or omissions and is presented without any warranty or representations as to its accuracy.

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CONTRIBUTORS

Carolyn Salzer Americas Head of Logistics & Industrial [email protected]

Bethany Clark Senior Managing Director, Strategy & Operations - Logistics & Industrial Services, [email protected]

Rob MillerSenior Research Manager, Global [email protected]

Rebecca Rockey Global Head of Economic Analysis & [email protected]

FOR MORE INFORMATION

Tray AndersonLogistics & Industrial Services Lead, [email protected]

Jason TolliverGlobal Head of Logistics & Industrial Research Managing Director, Investor [email protected]

Kristina BowmanNational Manager of Research, Canadian [email protected]

Jose Luis Rubi Market Research Manager, Mexican [email protected]

2021 north american industrial outlook

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