TAG Industrial Market Watch: August 4, 2018

“Texas recently came in as the top international exporting state in the country by a long shot, and only second to California in imports. This is creating demand for industrial real estate, specifically inland logistics centers. Over one million Texans owe paychecks to this trend, as electric machinery, electric parts, mineral fuel and oil, and other industrial products are among top Texas export commodities.Even with uncertainty and volatility in the political climate, commercial mortgage lending remains potent. Due to certain Dodd-Frank rollbacks and CRE loans being exempt from specific High Volatility rules, banks are incentivized to lend.On an interesting side note, 5G cellular service is set to be available in 2019 by the likely Sprint and T-Mobile merger, potentially increasing incomes for properties with the additional cell phone towers (i.e. cell tower ground leases) that will be needed. These towers could reach millions in number to deliver the 5G promise. Even now, these leases average about $47K and the buildings may not even need Wi-Fi with the tower add-on. Conversely, potential health risks associated with these towers may also hold property owners liable if those rumors hold true.”

Adam Abushagur

Managing Director- TAG Industrial

Industrial News

It’s Boom Time For Logistics Landlords
Forbes- July 31, 2018
The Importance of Imports in Texas
D Magazine- July 2018
Huge new industrial park in the works at DFW International Airport
Dallas News- July 31, 2018

Regional News

Trammell Crow plans 2M SF spec complex at DFW Airport
Dallas Business Journal – July 31, 2018
Read more
High Street, Olympus Take TX Luxury Community to Next Phase
Multi-Housing News – August 02, 2018

Fort Worth apartment complex with 240 units sold
Fort Worth Business – July 30, 2018
Read more

National News

Why Amazon can’t touch Ross and TJMaxx
CNN Money – July 30, 2018
Read more
Breweries hit record number in U.S. as openings and closings heat up
chicagotribune.com – August 01, 2018
Read more
U.S. consumer spending rises; wage growth slows in second-quarter
U.S. – July 31, 2018
Read more