The North American industrial real estate market faces near-term softness due to U.S. trade policy uncertainty and long-term tailwinds from manufacturing ascendency, supply chain regionalization, and industrial real estate opportunity borne of rewriting trade flows. The era of permanent supply chain volatility continues and requires extensive scenario planning and a keen understanding of evolving market dynamics.
Canada: Adapting to Trade Shifts鈥�
A dramatic and sudden shift in American trade policy in early 2025 has caused Canada to significantly reassess its long-standing economic relationship with the U.S. and accelerate the diversification of global markets for Canadian exports. Canada remains committed to maintaining its historically close trade relationship with the U.S. while simultaneously investing in the re-alignment of trade infrastructure along an east-west axis and enhancing support for domestic manufacturing capabilities. These strategic initiatives position Canada’s industrial market for long-term economic growth, even amid short-term market adjustments.鈥�
U.S.: Navigating Volatility鈥�
U.S. market participants should expect increased volatility, necessitating a balance between strategic patience and decisive action. In the near term, the potential for softer leasing volume and extended investment timelines compounds existing slower-growth fundamentals, contributing to recessionary indicators. However, long-term opportunities exist in markets with diversified industry exposure, robust multi-modal logistics infrastructure, and strong demographic and economic tailwinds as trade flows continue to recalibrate.鈥�
Mexico: Resilience Through Economic Diversification 鈥�
Mexico, now the U.S.’s largest trading partner, faces challenges from new U.S. tariff policies but is committed to reconciling interests to preserve North American economic integration and regional ties. To ensure sustainable growth, Mexico is diversifying its industrial base through expanded infrastructure spending, domestic consumption stimulation, and foreign investment incentives, among other initiatives. 鈥�
Gain deeper insights into these evolving trends and prepare for the future by reading the full 2025 North America Industrial Report. Download the report now and equip yourself with the knowledge to navigate the North American industrial real estate landscape.
