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Industrial bubble poses a small risk to rents

With hindsight, part of the boom in the industrial sector seen during and after the pandemic now looks like a bubble. That raises the risk that the overhang of assets started during that period of irrational exuberance will now weigh on rents. However, any bubble was short-lived and developers have been quick to cut back. That should limit the fallout, but we still expect all-industrial rental growth to slow to a below-consensus 3% next year.

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