TAG Industrial Watch: October 1, 2022

Even prior to the Pandemic, the manufacturing industry was steadily on the rise, regaining over 1.3 million jobs that were previously lost during the Great Recession. Manufacturing employment has since fully recovered from the effects of the covid-related lockdowns, rising to the highest level since November 2008 at nearly 12.9 million jobs (Bureau of Labor Statistics). Spearheaded by chip makers, electric vehicle manufacturers, and lithium battery producers, many companies have chosen to reshore or expand production in the U.S. in response to the disruption in global supply chains. The $53 billion CHIPS and Science Act signed by President Biden will help foster even more domestic growth from these interrelated industries (REJournals).

Naturally, the industrial real estate market will benefit from a rise in manufacturing activity, especially in the markets that will host these new factories. However, expectations should be tamed as the U.S. economy is confronted by stagflation and the highest interest rate environment in 15 years. In addition, as global shipping rates retreat to pre-pandemic levels, the benefit of reshoring also diminishes. Nonetheless, the rise in domestic manufacturing is an exciting new development that stands to positively impact many local industrial landlords.

I N D U S T R I A L   N E W S

Reshoring Providing Yet Another Boost To Industrial Market
REJournals – September 28, 2022
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Industry Embraces Reshoring Initiatives
Commercial Property Executive – September 28, 2022
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Why Some Industries Are Moving First On Reshoring
Globe St. – September 29, 2022
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China Shipping Prices Plummet Due To Worsening Economic Conditions
Bisnow – September 26, 2022
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Still No Space, But Is Redevelopment The Solution To
The Lack Of Available Land?

REJournals – September 13, 2022
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R E G I O N A L   N E W S

GID Announces Acquisition of 62,000+ SQ FT Industrial
Warehouse in Austin, TX

PR Newswire – September 22, 2022
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Top 5 Markets For Industrial Construction Activity
Commercial Property Executive – September 21, 2022
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Lovett Industrial, Cresset Partners Break Ground On 1.2 MSF
Logistics Project In Conroe, Texas

REBusiness Online – September 16, 2022
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CenterSquare And Boomerang Interests Execute Long-Term Lease
With Lineage Logistics For Houston Coldport
REJournals – September 15, 2022
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Despite Rising Ceiling Heights, Demand Shows There’s
Still Room For Shorter Warehouses

CoStar – September 22, 2022
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