Good News Friday - December 11, 2009

Let's Trade

International trade volumes are rebounding at a rapid rate, the unmistakable signs of a global economic expansion. Since bottoming in April, U.S. exports have risen by 12.4 percent through October thanks in part to the weak dollar, which has made domestically produced goods more affordable for our trading partners. Investment-based exports consisting of capital goods and industrial supplies were up a combined 3.2 percent in October, led by aircraft, computer equipment, chemicals and precious metals. Import volumes are up 13.0 percent from their trough in May, a sign that domestic demand is recovering. The growth in trade means that more goods are flowing through corporate supply chains, which will support demand for warehouse/distribution space. Moreover, the growing demand for U.S. exports is boosting the manufacturing sector, which will support demand for manufacturing and general industrial space.

Have a great weekend.

Robert Bach
SVP, Chief Economist
Grubb & Ellis
312.698.6754