Are all forecasters too bearish about industrial rents?

Despite a recent improvement in some near-term demand indicators, even the most optimistic forecaster in the consensus only expects nominal industrial rents to be 1% higher at end-2013 than they are now. The weight of evidence, however, suggests that analysts are not unduly pessimistic and that forecast upgrades would be premature. Given the weak economic outlook and still-high vacancy rates, we continue to expect industrial rents to fall by 3% to 4% this year and 1% next.