According to the latest report, the net absorption of the U.S. industrial real estate market reached 29.9 million square feet in the second quarter, indicating an outperforming market, particularly driven by the continued demand for newly constructed logistics facilities, showcasing the industry's resilience and stability.
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The inaugural flight of the 'Huangpu-Incheon' international route has improved logistics efficiency between China and South Korea, leading to a 28.5% year-on-year increase in container import and export volume.
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South Korea has established a $1.2 billion shipping fund to support the recovery of its shipping companies, emphasizing the need to control debt ratios. The relevant legislation must be approved by the National Assembly.
The Q2 report on the U.S. industrial real estate market shows stable net absorption, driven by the resilience of the logistics sector which boosts demand for new warehouses. Despite challenges, companies are optimizing supply chain management through modernized facilities. Looking ahead, the stable market outlook presents opportunities for businesses.
In the second quarter of 2023, the U.S. industrial real estate market demonstrated stable resilience with a net absorption of approximately 29.9 million square feet. The demand growth was driven by new logistics products, despite rising vacancy rates and consolidation pressures in some regions. By 2025, new supply is expected to exceed absorption, while absorption is projected to surpass supply by 2027.
The Cushman & Wakefield report indicates that in the second quarter of 2023, the U.S. industrial real estate market remained stable, driven by logistics resilience. There was strong demand for new warehousing facilities; however, the western regions faced negative absorption pressures. It is expected that in the coming years, new supply will continue to exceed absorption until 2027, when the market is forecasted to reverse.
