TAG Industrial Watch: November 12, 2022

The nation’s largest industrial landlord, Prologis, has recently announced that it will significantly scale back the development of speculative warehouses, citing that two of its biggest tenets (Amazon and FedEx) have slowed down their pace of leasing (The Motley Fool). The slowdown in warehouse demand comes at the very moment the nation is experiencing its biggest boom in industrial development, with over 700 million square feet under construction.

While the threat of overbuilding has gone from unthinkable just a year ago to a reality today, not all industrial landlords need to be concerned. Much of the new development is concentrated in big box facilities. Properties 200,000 square feet and over make up 79% of the pipeline, versus less than 3% for small industrial facilities up to 50,000 square feet (CoStar). While often overlooked, small industrial is in a much better position to weather the imminent economic storm.

I N D U S T R I A L   N E W S

Hessam Nadji: How We Got to Where We Are and What’s Next
Globe St. – October 25, 2022
Read More

Here’s Why Prologis Is a Red Flag for Economic Growth
The Motley Fool – October 30, 2022
Read More

Prologis Pivoting Away From Spec, Ramping Down Dispositions as Market Softens
Bisnow – October 19, 2022
Read More

Demand for Industrial Space Is Slowing Down. But It’s Still a Landlord’s Market
WealthManagement.com – October 25, 2022
Read More

Inflation, Interest Rates and the Industrial Market
REjournals – November 9, 2022
Read More

 

R E G I O N A L   N E W S

CRE Future Leaders: Tyler Sharp of Marcus & Millichap
REjournals – November 4, 2022
Read More

State of DFW
DMagazine – November 2, 2022
Read More

Top 5 Industrial Transactions in Chicago
Commercial Property Executive – November 2, 2022
Read More

Tesla Rents 440,000 SF Warehouse in San Antonio
Connect CRE – November 2, 2022
Read More

U.S. Port Markets See Outsized Industrial Rent Growth, Dwindling Availability
WealthManagement.com – November 3, 2022
Read More