TAG Industrial Watch: February 4, 2023

This week, the Federal Reserve once again bumped up interest rates on bank-to-bank lending to a range of 4.5% to 4.75%, hitting the highest level since the fall of 2007. Rising rates have already started to impact the commercial real estate world, not all players will be equally affected. For developers, the highest interest rates in 15 years are drastically increasing the cost of new projects, causing many plans to be shelved. With regards to the industrial market, construction starts fell to a two-year low during the last quarter of 2022 at 99 million square feet (CoStar, Top 50 MSA).

On the flip side, fewer new developments benefit existing industrial landlords by limiting the supply from which tenants and buyers can choose. All else being equal, lower supply means higher property valuations. While new developments have been the focal point of the industrial market in previous years, the stability of existing properties with long-standing tenants may start to take center stage.

I N D U S T R I A L   N E W S

Interest Rate Hike #8: The Impact On CRE
Commercial Property Executive – February 1, 2023
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An Under-The-Radar Economic Indicator Is Flashing
A Warning Not Seen Since The 2008 Financial Crisis

Yahoo! – January 31, 2023
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Why Sale-Leasebacks Are Especially Important Now
Globe St. – January 5, 2023
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Amazon Opens Logistics-As-A-Service Offering
To Leverage Bloated Warehouse Footprint

Bisnow – January 12, 2023
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Equity Investors Pull Back On The Industrial Sector
As Return Expectations Dim

WealthManagment.com – January 18, 2023
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R E G I O N A L   N E W S

EastGroup Looking at Round Rock Again For Light-Industrial
Connect CRE – February 2, 2023
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Growth And Northwest Indiana Go Hand In Hand, And
The Region Is Just Getting Started

REJournals – January 31, 2023
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Opposition Mounts To Texas Bill Banning U.S. Real Estate
Investment By People From China, Other Nations

Bisnow – January 24, 2023
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Nike Leases 1 MSF Dallas-Area Warehouse
Commercial Property Executive – January 19, 2023
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Coalition Wants Two-Year Moratorium
On Inland Empire Warehouses

Globe St. – February 1, 2023
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