Monday, March 8, 2010
Report: Brighter future ahead for industrial real estate sector
It may not be considered the sexiest or most exciting property type, but industrial real estate’s stability and growth opportunities in 2010 put the sector head and shoulders above other types of commercial property.
There is a close historical correlation between industrial demand and economic activity. The ISM (Institute for Supply Management) index, which measures business activity for both manufacturing and non-manufacturing, is a key indicator of an expanding or contracting economy and is an especially relevant metric for the industrial sector. Since bottoming in November/December 2008, both the ISM manufacturing and non-manufacturing indices have increased, indicating an economic expansion.
While the IMF does not forecast global trade, one can expect that if the historical relationship holds going forward, global trade will exceed the mid-single-digit growth expectation for global GDP, according to Barclays.
In fact, analysts are anticipating a rebound in container traffic through U.S. ports during 2010. After having contracted about 10 percent during 2009, U.S. container traffic is expected to grow about 6.5 percent in 2010 to 41 million TEUs. However, traffic is not expected to regain its 2007 peak until next year.
-GE Capital Real Estate Global Monitor Newsletter
For the full report: nreionline.com
More Newswire stories
“K” Line, MOL to jointly launch two new loops to West Coast
Global industrial metals market on path to recovery
French Navy claims biggest pirate capture
Click to browse past stories on these topics:
Logistics
Ports & Infrastructure
Economic Outlook
Environmental Impact
Technology
Home/Subscribe/Our Conferences/Ports Handbooks/Advertising Info/Multimedia/Publishing Services/About Us
Contact/Calendar/Past Issues/Upload Files
All contents of this site are copyright 2010 by Northwest Publishing Center and Cargo Business News and may not be reproduced in any way without express written consent of the author.