TAG Industrial Watch: July 9, 2022

As forecasted in the Industrial Watch back in April, economic activity during the second quarter likely declined further. With only three weeks left before the official GDP report is released, the Federal Reserve Bank of Atlanta is projecting a decline of 2.1% (CNBC). Not only is the U.S. economy likely in a textbook recession, but an inflationary contraction. With regards to industrial real estate, early data show that sale transactions took a step back during Q2 (CoStar) and could be further impacted by the news of an inflationary recession. All eyes will soon be on the Federal Reserve, which is expected to once again aggressively hike interest rates just a day before the next GDP report is released. However, when it comes to fighting inflation, the Fed appears to be more bark than bite. After announcing that it would reduce its balance sheet by $47.5 billion in June, the Fed only sold $728 million worth of bonds. Since hiking rates well into a recession could have serious financial implications, there’s a chance the Fed may hit the pause button under the guise that inflation is in decline.

I N D U S T R I A L   N E W S

Atlanta Fed GDP Tracker Shows The U.S. Economy Is Likely In A Recession
CNBC – July 1, 2022
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The Atlanta Fed Can’t Keep Up With The Bad Economic News
Globe St. – July 5, 2022
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How Many Deals Will Rising Interest Rates Wipe Away?
CRE Pros In Wait-And-See Mode

REJournals – July 7, 2022
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Rising Interest Rates, Inflation Lead Investors To Reassess
Which CRE Assets To Pursue

WealthManagement.com – June 28, 2022
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Industrial, Apartment Prices Set More Records As
Demand For Both Persists

Bisnow – June 24, 2022
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R E G I O N A L   N E W S

‘There Are Clouds On The Horizon’: Slowdown Headed
For DFW’s Industrial Market

Bisnow – July 1, 2022
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Waffle Company To Open 147,000-Square-Foot Manufacturing
And Warehouse Operation In St. Louis Area

KSDK – July 6, 2022
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Faropoint Sells 6.8 MSF For $481M
Commercial Property Executive – July 6, 2022
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Venture One Breaks Ground On $71 Million Project
REJournals –  June 28, 2022
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McCarthy Completes Port Houston Container Yard
ConnectCRE – June 28, 2022
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