TAG Industrial Watch: August 6, 2022

Earlier this year, retailers were caught off guard as consumers, finally free from covid-related lockdowns, began spending more money on services like vacations and less on home goods such as furniture. As the year unfolded, consumer demand for home goods continued to drop. However, inflation has become the main culprit as prices of necessities like gas, food, and rent soared, putting a squeeze on discretionary spending. Consequently, inventories at warehouses began piling up. While this is bad news for the retail industry, the industrial real estate market ironically benefits, at least in the short term. Whether retailers slash prices, resale goods to wholesale liquidators, or slowly work off excess inventory, warehouse space will come into play. However, warehouse demand in the long run will depend on the strength of the consumer.

I N D U S T R I A L   N E W S

What Happens When People Want All The Air
Fryers And Then, Suddenly, They Don’t

NPR – July 25, 2022
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Retail’s ‘Dark Side’: As Inventory Piles Up,
Liquidation Warehouses Are Busy

The New York Times – July 30, 2022
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Prologis: Excess Inventory Could Lead To 800M SF
More Warehouse Demand

Bisnow – August 2, 2022
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Small Investor Opportunities Surface For Industrial
Globe St. – August 3, 2022
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The Higher Cost Of Capital Is Beginning
To Erode CRE Asset Prices

WealthManagment.com – July 18, 2022
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R E G I O N A L   N E W S

AllianceTexas Adds 1.7 Million Square Feet Of Industrial
Space In Two Fort Worth Buildings

Fort Worth Star-Telegram – August 4, 2022
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New Tenants Sign Leases Totaling 32,101 SF At Industrial
Property In Schaumburg, Illinois

RE Business Online – August 3, 2022
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Industrial Outdoor Storage Lot Sells For $8M
Mile High CRE – July 14, 2022
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Samsung Exploring Even More Growth In Austin Suburb
Connect CRE – July 21, 2022
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In The Midst Of Texas’ Industrial Boom, Vault Partners
Sells Off Its First Houston Industrial Park

The Real Deal – July 25, 2022
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