TAG Industrial Watch: October 29, 2022

After declining for two consecutive quarters, economic activity in the U.S. rebounded in the third quarter with Gross Domestic Product (GDP) rising 2.6% on an annual basis. While the headline number provided good news to Wallstreet, helping stocks recover lost ground over the last month, a closer examination shows that the economic environment is still weak. Essentially, all of the growth during Q3 was caused by a reduction in imports and a rise in exports that narrowed the nation’s trade deficit, which subtracts from GDP. However, when it comes to the rest of GDP: consumption of goods and services, business investment, and government spending, economic activity continued its decline. While the decline in consumption doesn’t bold well for the large warehouse segment of industrial real estate, smaller specialized facilities are better positioned. Relative to consumption, manufacturing activity continues to hold up well, serving as a key support to the smaller specialized industrial market.

I N D U S T R I A L   N E W S

U.S. GDP Accelerated At 2.6% Pace In Q3, Better Than Expected As Growth Turns Positive
CNBC – October 27, 2022
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What’s Behind Q3’s Industrial Investment Sales Slowdown
Globe St. – October 27, 2022
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Demand for Industrial Space Is Slowing Down. But It’s Still a Landlord’s Market
WealthManagement.com – October 25, 2022
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Frozen Debt Markets, Local Pushback Chipping Away At Industrial Cash Cow
Bisnow – October 21, 2022
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Industrial Market Trends, Takeaways From SIOR CREate 360
Commercial Property Executive – October 21, 2022
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R E G I O N A L   N E W S

Arden, Wafra Launch $1 Billion Venture To Buy Outdoor Industrial Sites
CoStar – October 20, 2022
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McKinney Factory New Home for Lithium-Ion Battery Recycling Plant
Connect CRE – October 26, 2022
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Chicago’s Industrial Supply Problem Could Linger Longer Than Expected
Bisnow – October 25, 2022
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Lightstone Secures $40M Financing for 11 Industrial Properties in Broomfield
Mile High CRE – October 27, 2022
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Q3 broke the record for highest percentage of construction starts during
a single period. A sign of market strength? Or another challenge?
REJournals – October 25, 2022
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