Daily roundup of research and analysis form the The Globe and Mail’s market strategist Scott Barlow
Scotiabank analyst Himanshu Gupta reports on the industrial REIT sector and let’s hope it’s not an indicator for the broader economy (my emphasis),
“Negative. CBRE released Q2/24 CDN industrial market stats yesterday … Q2 industrial absorption was disappointing at -5M sf, suggesting a meaningful demand pullback. Last time we saw this level of negative absorption in Canada was during the GFC (Q1/09 to Q3/09). Supply side has moderated, but we need to see some recovery in leasing volumes. Assuming a H1/25 demand recovery (not H2/24 anymore), we see national availability rate peaking in Q4/24, and then slowly improving through 2025/26. Update on Valuation: Valuation looks inexpensive but market waiting for inflection point on fundamentals. Industrial REITs continue to trade in line with REIT sector since Oct’23, as entire…
