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Production Decline Boosts Industrial Vacancy Rates Worldwide

A decline in global production levels and exports is driving up industrial vacancy levels across the globe, according to the most recent edition of Global Market View from CB Richard Ellis.

By John McCloud | Updated on June 03, 2009

A decline in global production levels and exports is driving up industrial vacancy levels across the globe, according to the most recent edition of Global Market View from CB Richard Ellis. The report says Q1 economic data reflects serious economic decline around the globe, and though the pace of industrial production and export decline is decelerating, most large economies have seen significant negative growth. China and India are the only major exceptions.

CBRE says recent declines in GDP were among the worst historically for many countries, with the major export-dependent nations of Asia seeing especially dramatic drops. On a year-over-year basis, Japanese Taiwanese and Chinese exports were down 45.6%, 35.7% and 17.1%, respectively, in Q1. The downturn has seen Asian governments take steps to reduce their reliance on exports to the West and strengthen support for domestic consumption.

According to the report, industrial production globally was growing about 5% per year in the early part of this decade, with much higher growth rates in Asia. But industrial production plunged in 2009, after a nearly flat performance in ’08. However, CBRE predicts a very modest rise for industrial production next year, reflecting the expectation for a long recession and a middling recovery.

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