By Tyler Durden | 15 June 2019
ZERO HEDGE — The latest Cushman & Wakefield commercial real estate report shows demand for US industrial space collapsed 60% on year in 1Q19, reflecting the global synchronized decline and the deepening trade war.
Cushman & Wakefield’s economists warned President Trump’s trade war is unraveling complex supply chains around the world that have led to a slump in demand for industrial space. They also said the restocking trend by importers forced by the tariffs is likely over. There is also another possibility that the slowdown could be linked to some seasonal factors, the economist said.
“It is possible that the trade dispute is causing disruptions to supply chains which are causing demand for industrial space to slow. Another possibility is companies may have overstocked before the implementation of tariffs in 2018. Seasonality, a general slowing in the global economy and lagging supply may also have been the main culprits,” economists Kevin Thorpe and Rebecca Rockey said in the report.
The report said world export volumes are expected to have no growth this year, dropping from a 5% annual expansion rate in the last two years. […]