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AMB Property Corporation(R) Releases Research Report on the Leading Indicators of Demand for Industrial Real Estate
Monday, November 02, 2009 9:15 AM


The company's new demand model illustrates the movement of goods and quantifies the magnitude and direction of these key variables with the demand for industrial real estate. This report is a useful resource for those who want to examine these relationships as we emerge from an unprecedented global financial and real estate crisis relative to historic behavior and correlations.

Detailed findings in the report include:


-- Production, trade and inventories have fallen to unsustainably low
levels. From their peak, they have declined by double digits, while
consumption has decreased by just 1.9 percent. Production and trade must
rebound in order to restock inventories and to meet even baseline demand
for goods.
-- Production and trade are in fact rebounding globally. The major
economies have exhibited positive growth trends in trade and industrial
production in recent months. These trends are precursors to sustained
inventory growth and increased industrial real estate demand.

-- Consensus trade forecasts imply 2010 U.S. net absorption of more than
100 million square feet and 500 million square feet globally - a
complete turnaround following negative absorption of 225 million square
feet through the first three quarters of 2009.

"By studying the interaction of trade with production and inventory levels, we believe our model provides greater accuracy into the turning points and forecasts the demand for industrial space," commented David Twist, AMB's vice president, Research. "We believe these indicators will need to rebound as there is no evidence that the structural relationship has changed, trade continues to serve as a means of raising productivity and lowering overall costs."

A copy of AMB's research report can be downloaded from the company's website at www.amb.com/global_capabilities/research.html.

AMB Property Corporation.® Local partner to global trade.(TM)

AMB Property Corporation® is a leading owner, operator and developer of industrial real estate, focused on major hub and gateway distribution markets in the Americas, Europe and Asia. As of September 30, 2009, AMB owned, or had investments in, on a consolidated basis or through unconsolidated joint ventures, properties and development projects expected to total approximately 156.1 million square feet (14.5 million square meters) in 47 markets within 14 countries.




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