INDUSTRIAL OVERVIEW
RECORD RENT GROWTH, LOW SUPPLY
Relentless demand continued for warehouse and distribution space across North America in 2022.  The year ended with a surge in fourth quarter absorption along with more double-digit annual rent growth.  While growth has slowed from the fever pitch of 2021, there have been no signs of significant deterioration in the fundamentals driving demand for industrial space. Inflation-adjusted retail goods sales and truck tonnage are at high levels, and containerized imports at U.S. seaports are posting seasonally adjusted all-time highs.

RETAIL OVERVIEW
REBOUND CONTINUES, MOST GROWTH IN YEARS
Retail real estate continued its rebound with another healthy year in 2022. In the United States, the 20.7 million SF of Q4 net absorption brought the total for the year to 74.8 million SF.  It was the most demand since 2017 and exceeded new supply by 30 million SF as the overall vacancy rate ticked down to 4.2%, the lowest in 15 years.

OFFICE OVERVIEW
HYBRID WORK, SLOWER GROWTH FORCES CUTS
Office demand in the United States ended the year with its largest quarterly deficit since Covid vaccines became available in early 2021. Hybrid work schedules have become the norm and companies are shedding space in anticipation of slowing growth and possible recession.

MULTIFAMILY OVERVIEW
INFLATION COOLS U.S. DEMAND
Overall tenant demand in the United States continued to weaken as the pandemic-fueled apartment market and its sky-high rent growth returned to earth in 2022.

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