Industrial Price Growth, Rarely in Lockstep, Is Now
August 30, 2019 | Jim Costello | Real Capital Analytics
Industrial property prices have grown faster than inflation across the Americas over the last three quarters. This sort of coordinated growth for industrial prices does not happen often.
One might think that to understand industrial property trends in the Americas, one could simply look at the economies of each country and sort of follow along with the biggest market in the Americas: the U.S. One could do that, but one would miss a lot as well, since real estate cycles are not always in tune with economic cycles.
Make no mistake, the economies of Canada, the U.S. and Mexico are closely connected thanks, in part, to the trade links through the USMCA (the trade agreement formerly known as NAFTA). Brazil is not part of this trade area, but with the U.S. as both the second largest source of both imports and exports for Brazil, economic activity is tied in these two countries.
