TAG Industrial Watch: July 23, 2022

Over the last decade, the development of large warehouses fueled the industrial market to new heights. Yet, as the economy slips further into stagflation, many of these newly developed warehouses are underutilized. Like Amazon, the owner-users of these warehouses aren’t hesitating to sublease surplus space (Bisnow), effectively increasing supply. Thus far, industrial demand has remained resilient, with the national vacancy rate sitting at a record low of about 4.0 percent (CoStar). Nonetheless, if demand slows and the subleasing of surplus space continues to rise, vacancies could easily reverse course. Since large warehouses can be subdivided, these properties can also compete with smaller industrial buildings. However, owners of special-use properties will be able to weather the storm.

I N D U S T R I A L   N E W S

Amazon Subleases 500K SF To Modular-Home Builder Veev
Bisnow – July 1, 2022
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Delivery Startup Gopuff Cuts 10% Of Its Global Workforce
And Closes 76 U.S. Warehouses

CNBC – July 12, 2022
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Inside The Recent Pause In Industrial Sales
Globe St. – July 12, 2022
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CRE Investor Sentiment Signals Changing Outlook
Commercial Property Executive – July 20, 2022
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Can The U.S. Supply Chain Withstand New Disruptions?
WealthManagement.com – June 30, 2022
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R E G I O N A L   N E W S

PepsiCo Eyes Largest US Plant
Commercial Property Executive – July 14, 2022
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Seefried Signs First Lease As It Breaks Ground On Spec
Warehouse In Booming O’Hare Submarket

Connect CRE – June 22, 2022
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Liberty Development Partners Acquires Gulf Inland
Logistics Park, CMC Railroad

RE Journals – July 11, 2022
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Arden, Arcapita JV Acquires DFW Infill Portfolio
Globe St. – July 8, 2022
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Houston-Area 1,158-Acre Logistics Park Trades
Commercial Property Executive – July 12, 2022
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