TAG Industrial Watch: May 7, 2022

While too little too late, the Federal Reserve finally showed some effort in fighting inflation by hiking interest rates by 50 basis points. Given that the bond market is pushing up interest rates faster than the Fed, many industrial investors have been pondering how much lower cap rates can go in commercial real estate’s hottest market. While no one has an industrial crystal ball, the market may be experiencing that low right now. Among the top 50 metro areas in the U.S., market cap rates on properties of at least 15,000 square feet experienced the smallest annual decrease over the last decade during the first quarter at just 4 basis points to about 6.3 percent. So far during the second quarter, that figure has slipped further to just 1 basis point (CoStar). Although cap rates may soon be on the rise, the industrial market still offers investors many excellent investment opportunities to thrive in America’s new economic environment.

I N D U S T R I A L   N E W S

Fed Raises Rates By Half A Percentage Point — The Biggest Hike In Two Decades — To Fight Inflation
CNBC – May 4, 2022
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NNN Cap Rates Have Continued To Compress, Inflation Could Change That
Globe St. – April 25, 2022
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Amazon CFO: We Have Too Much Space, Too Many People
Bisnow – April 29, 2022
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Warehouse Feeding Frenzy Pushes Some Investors To Older, Smaller Buildings
CoStar – May 3, 2022
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Marcus And Millichap Assesses Economic Headwinds
Yield Pro – April 28, 2022
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R E G I O N A L   N E W S

Dallas Area Chosen For Large Scale Cold Storage Project
Connect CRE – May 3, 2022
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Korean Investor Pays $190M for West Houston Industrial Asset
Commercial Property Executive – April 21, 2022
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Two-Building Industrial Park In Austin MSA Sells
RE Journals – April 27, 2022
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1.3 MSF Fully Leased Denver Industrial Portfolio Changes Hands
Mile High CRE – April 19, 2022
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Independence Approves Controversial $1 Billion Warehouse, Manufacturing Development
The Kansas City Star. – May 3, 2022
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