TAG Industrial Watch: December 10, 2022

Two years after the housing bubble peaked in 2006, mortgage giant Lehman Brothers collapsed and sparked the worst recession since the Great Depression. Today, the names have changed and the industries are different, yet the storyline remains the same. The boom in the industrial real estate market seemingly peaked earlier this year, and already the titans of the industry are showing signs of distress.

Recently, the world’s largest nontraded REIT, Blackstone’s Real Estate Investment Trust (BREIT), announced that their investors hit the cap on withdrawals from the fund. Given that 80% of BREIT is concentrated in multi-family and logistics facilities (The Real Deal), Blackstone’s announcement is another example of the trouble brewing among big box warehouses. Although the overdevelopment of big box has suddenly become problematic for institutional players, the underdevelopment of small industrial properties has uncovered a golden opportunity for private investors.

I N D U S T R I A L   N E W S

Blackstone Limits REIT Withdrawals
The Real Deal – December 1, 2022
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Blackstone Limits Investor Withdrawals From $145 Billion
REIT As Economic Concerns Grow

CoStar – December 1, 2022
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ICSC: Nadji Sees Two Rate Hikes Coming, Then A Pause
Globe St. – December 8, 2022
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U.S. Manufacturing Orders From China Down 40%
In Unrelenting Demand Collapse

CNBC – December 4, 2022
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US Has Closed $72B In Warehouse Sales So Far In 2022
Commercial Observer – November 30, 2022
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R E G I O N A L   N E W S

GKN Aerospace To Move North America Additive
Manufacturing Center To Fort Worth

Dallas Innovates – November 29, 2022
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South Korean Tech Company To Expand Round Rock Facility
Connect CRE – November 28, 2022
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Bratt Capital Partners Launches High-Velocity
Logistics Facility Near Chicago

REJournals – November 29, 2022
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Boston-Based TA Realty Acquires Two-Building
Industrial Portfolio Near DIA

Mile High CRE – November 29, 2022
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HSA Commercial Breaks Ground On Wisconsin Warehouses
Commercial Property Executive – November 21, 2022
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