TAG Industrial Market Watch: November 10, 2018

“Dallas Fort Worth is known as a mega distribution hub, and industrial investors are taking notice. Tollways, turnpikes, railways, and expanded freeways continue to add to the transportation network to keep up with demand. In addition, the metroplex is experiencing extreme population and job market growth. All of this combined has made DFW a hot spot for industrial logistics properties, attracting the likes of Amazon, Wayfair, UPS, FedEx, Kohler, and GE Appliances in 2018. Of course, industrial construction is on the rise, and even with 29 million planned for 2018, vacancy rates continue on a downward spiral.
So, who in particular is noticing? The answer is foreign investors, as an industry trend. It used to be that these investors relied on office and multifamily assets, but more and more have now found a safety net in industrial portfolios. Part of the appeal is that buyers recognize and respect these big names in distribution facilities. To put it in perspective, $5.8 billion was invested into U.S. industrial real estate in 2017, followed by over $6.6 billion by May of 2018. With Dallas leading the pack, Los Angeles, Chicago, Atlanta, and San Francisco are the cities with the highest industrial transaction velocity through Q3 of this year.”

Adam Abushagur

Vice President Investments

Managing Director – TAG Industrial

Industrial News

Blistering Demand For Industrial Space Drives Up National Occupancies, Sets Off A Wave Of Development
BisNow- November 5, 2018
 In Spite Of Its Problems, Big Global Investors Still Want To Pour More Into Real Estate – $100B More
BisNow- October 31, 2018
Industrial Construction Can’t Keep Up with Red-Hot Demand
GlobeSt.com- November 8, 2018

Regional News

Amazon will split HQ2 into two locations
Dallas Business Journal – November 06, 2018
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More warehouse space on the way at DFW Airport
Dallas News – November 06, 2018
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Wholesale Grocer to Open 650,000 SF Distribution Center in Fort Worth
REBusinessOnline – November 05, 2018
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National News

Interest rates could hit new decade high even if Fed does nothing at its meeting
CNBC – November 08, 2018
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US shoppers will spend over $1 trillion this holiday season for the first time ever
Quartz – November 06, 2018
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US job openings dip but still exceed number of unemployed
Boston Herald – November 07, 2018
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