Release Date: 21 September 2009
Release ID: 4250
DENVER, Sept. 21 /PRNewswire-FirstCall/ -- ProLogis (NYSE: PLD), a leading global provider of distribution facilities, announced today the release of a new research report on the state of the industrial property markets in the United States and Canada, entitled "Too Soon to Uncork the Champagne."
The report is based on market statistics compiled from a variety of sources, including ProLogis market officers, brokerage companies and data providers. The information covers the top 31 distribution property markets in the United States and Canada during the first half of 2009.
"As the U.S. economic recession has continued to deepen, so has the cyclical downswing in the distribution property leasing markets," commented Len Sahling, first vice president of the ProLogis Research Group. "The good news is that the rate of decline moderated during the second quarter of 2009, and the U.S. economy appears to be poised for recovery beginning in the third or fourth quarter of 2009. However, since the real estate cycle typically lags behind the economic cycle, property market conditions are unlikely to exhibit material improvements until next year."
Detailed findings in the report include the following:
* The average vacancy rate for bulk distribution space across the top markets increased to 10 percent during the second quarter of 2009, from 8.7 percent at year-end 2008 and 7.6 percent at midyear 2008.
* Net absorption for the top 31 markets declined to minus 56 million square feet in the first half of 2009 from plus 34 million square feet in 2008 and plus 141 million square feet in 2007.
* New starts fell to five million square feet during the first six months of 2009, versus 92 million square feet started in 2008 and 161 million square feet in 2007.
For a copy of the report on the top property markets in the United States and Canada, please visit: http://www.prologisresearch.com/supplychain/default.asp?reid=A3U21438287DE.
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