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Though industrial property fundamentals continued to stabilize in the second quarter, increased domestic and international economic volatility continues to fuel uncertainty. The recovery is not strong enough to drive occupancy gains across the board, and could cause future growth to stall.
Though volumes continue to lag behind pre-recession levels, positive indicators include a drop in vacancy, steady net absorption and resumption of capital markets activity. Growth remains propped up by the “big-box” logistics and distribution sector, but mid-tier industrial occupiers are gaining some traction. However, all of these near-term gains are vulnerable to a downshift in the global economy, and fiscal instability in many nations including the U.S., Canada and Mexico.
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