Post by
retiredcf on Jun 06, 2024 8:48am
CIBC Notes
Geography Under The Microscope: After an exceptional few years for the industrial space during the pandemic, we saw somewhat of a narrative shift in 2023 and regional differences in industrial REITs’ portfolios seemed to be magnified, with investors favouring Canadian exposure. However, even as increased supply in certain U.S. markets has pressured occupancy levels, rent growth has been comparable to the stronger Canadian markets. To date, leasing of 2024 maturities has fetched large rent spreads, and we expect solid SP-growth for DIR and GRT. Further, we view the improving supply picture in the U.S. through to the end of 2024 to bode well for GRT. CBRE forecasts that U.S. deliveries will start to drop off by mid-2024, and anticipates that overall vacancy will increase to the 10-year average of 5%, before showing a slight improvement in H2/24.