A new report from the REIS team at Moody's Analytics says that the COVID-19 pandemic's impact on the industrial real estate market has yet to surface in the data since leases are locked in and the economic slowdown's impact on trade has thus far been ambiguous.
While the declines in asking effective rents are modest, most leases are being signed at levels below what those quoted rents would suggest. Performance hasn't gone off the edge of the cliff, but it is notably weakened for now.
JLL report says that the Asis-Pacific region among eight in the world showed the largest decline in investment during the first quarter, compared to last year, in correction with the spread of the coronavirus.
"The development of a vaccine or a highly effective therapy may be the inflection point that sets the stage for a meaningful recovery, given an aging demographic and likelihood of slower growth in industry supply," the agency said in the report.