TAG Industrial Watch: August 27, 2022

A year ago, most financial experts believed that the supply chain disruptions and raging inflation battling the economy would be alleviated going into 2022. However, eight months into the year, the buzzwords “supply chain” and “inflation” continue to dominate the headlines. Regarding the industrial market, supply chain issues and inflation have either been a benefit or a headache depending on who you are. For developers, supply chain disruptions and inflation have continued to wreak havoc delaying delivery dates and pushing up construction costs. However, rapidly rising prices have benefited existing property owners as market rent growth hit new heights. The spread between newly leased industrial spaces and in-place rents set a new record at $1.45 per square foot (CommercialEdge). Moreover, with the cost of construction materials up nearly 15% by one estimate (Globe St.), existing properties continue to rise in value as replacement costs steadily increase.

I N D U S T R I A L   N E W S

Supply Chain Disruptions Contribute To Historic Highs
In Industrial Lease Spreads

CommercialEdge – August 2022
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Building Materials Costs Growing At Astonishing Rates
Globe St. – August 17, 2022
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Peloton To Slash Costs By Shuttering ‘Significant’ Number
Of Stores, All Its Warehouses

CoStar – August 12, 2022
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Amazon Nixes Or Delays Opening Almost 50 Warehouses
Commercial Observer – August 23, 2022
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Is Industrial’s Boom Era Ending?
Commercial Property Executive – August 18, 2022
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R E G I O N A L   N E W S

Third Terminal On The Way At Port Houston As Supply
Chain Reshuffle Sends Growth Soaring

Bisnow – August 23, 2022
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Industrial Maintains Strength, According To Clear Height Properties
REJournals – August 23, 2022
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Gap Opens 850,000 SF Distribution Center In Longview, Texas
REBusiness – August 24, 2022
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McCauley Constructors To Break Ground On Concrete
Manufacturing Facility In Elbert County

Mile High CRE – August 22, 2022
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Chicago Industrial Vacancies Post First Rise In Two Years
The Real Deal – August 22, 2022
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