The industrial market’s 800-pound gorilla, also known as Amazon, surprisingly posted an earnings loss in the first quarter. As it turns out, Amazon overbuilt warehouses and will consequently have to reduce its footprint. Given that industrial cap rates are paying the lowest premium above the 10-Year Treasury Bond rate since the peak of the housing bubble in 2007 at just 3%, evidence is building that industrial may be hitting its peak (CoStar, St. Louis Federal Reserve). However, there is a silver lining that will provide a support level as interest rates continue to rise. Similar to the single-family housing market, the supply of industrial space for lease is at a record low of 16 months, given current absorption rates (Freight Waves). Even when higher interest rates begin to suppress investment demand, tight supply will help support historic high rents.

I N D U S T R I A L   N E W S

Prologis: US Logistics Real Estate Market Hits Record-Low 16-Month Supply
Freight Waves – May 11, 2022
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Why I Think An Industrial Real Estate Bubble Is Forming
Globe St. – May 17, 2022
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Amazon’s Net Loss Prompts Query: Has It Built Too Many Warehouses?
Reuters – April 29, 2022
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Why This New Venture Is Betting $500 Million On Cold Storage
Even As Industry Faces Headwinds
CoStar – May 10, 2022
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Consumption’s A Constant, And Therefore So Is Cold Storage.
But There Are Considerable Challenges
RE Journals – May 17, 2022
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R E G I O N A L   N E W S

Houston Breaks Industrial Market Records
Connect CRE – May 17, 2022
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Huge Logistics Leases Near Chicago Airport Show Industrial
Boom Still Has Runway
CoStar – May 17, 2022
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Hillwood Sells Amazon-Leased Warehouse In DFW
Commercial Property Executive – May 16, 2022
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Amazon Pullback ‘Incredibly Healthy’ For Denver Industrial Development
Bisnow – May 10, 2022
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Singapore REIT To Buy $99M Chicago-Area Industrial Portfolio
Commercial Property Executive – May 11, 2022
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