TAG Industrial Market Watch: August 11, 2018

“Industrial real estate sales volume continues to set the pace for the commercial investment industry as a whole in the United States. In regards to a global scale, sales volume has remained fairly stagnant comparative to 2017.  With vacancy rates at an all-time low, property owners have their eye on tenants with great credit rather than a promise of higher rental rates. The ball remains in the landlords’ court at this time in the market.

With industrial demand and need for efficiency in related e-commerce businesses, competition and innovation in warehouses remains rampant. Technology is advancing to keep up with this efficiency and productivity in the form of high ceilings, air conditioning, robotic conveyor belt systems, radio frequency identification, and artificial intelligence, e.g. “smart warehouses.” In most instances, the tech improvement costs land with the tenants, either through tenant-improvement allowances or such costs being amortized over the lease term. Although these upgrades may seem to negatively affect job availability in the United States, these types of skilled workers are lacking in availability.”

Adam Abushagur

Managing Director- TAG Industrial

Industrial News

Owners Focus On High-Credit Tenants As Industrial Market Keeps Heating Up
Bisnow- August 6, 2018
Trade War Rumblings Have Yet to Make an Impact on U.S. Industrial Real Estate
August 9, 2018
What Is A Smart Warehouse And Why Does It Cost So Much?
Bisnow- August 5, 2018

Regional News

D-FW is the nation’s undisputed king of home construction in the latest ranking

The Dallas Morning News – Business – August 09, 2018
Hunt Realty buys 2,500-acre ranch in Frisco for master-planned development

Dallas Business Journal – August 07, 2018
RCM, ArchCo Break Ground on 227-Unit Apartment Community in Fort Worth

REBusinessOnline – August 03, 2018

National News

Small businesses find tight job market makes it hard to hire

Palladium-Item – August 08, 2018
Richmond Fed’s Barkin sees higher rates needed amid strong economy

Richmond Times-Dispatch – August 08, 2018
This company plans to open 200 mattress stores across the US, as Mattress Firm struggles

CNBC – Real Estate – August 08, 2018