TAG Industrial Watch: March 4, 2023

America’s global shopping spree that took off in 2021 continued last year as total imports topped $3.2 trillion, increasing the trade deficit by 10% to a record high of $1.2 trillion. The massive influx of imports has been the driving force behind the boom in Industrial Outdoor Storage spaces (IOS) as shipping containers stack up near ports and railyards. In total, IOS properties are now valued at $200 billion across the U.S. and the segment has been outperforming the overall industrial market. According to a Marcus & Millichap report, the vacancy rate among IOS properties dropped below 3% in 2022, with rents spiking 30% since the end of 2019 (Bisnow). Unlike the big box warehouse segment, IOS properties (often regarded as an eyesore) have essentially no competition from new development given the difficulty in getting building permits. As the overall industrial market experiences lower absorption levels this year, the lack of new supply will help shelter IOS properties. While America’s global shopping spree continues, IOS landlords have a great opportunity to take advantage of unprecedented levels of equity.

I N D U S T R I A L   N E W S
‘You’ve Driven Past Them A Million Times’: The $200B Opportunity Of Industrial Outdoor Storage
Bisnow – February 21, 2023
Read MoreU.S. Goods Trade Deficit Widens In January; Wholesale Inventories Decline
Reuters – February 28, 2023
Read MoreWith Warehouses Full, Shippers Are Holding Product On Chassis
Globe St. – February 14, 2023
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‘Everything Is Frozen’: CMBS Bond Volume Falls By 85%
Bisnow – February 20, 2023
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Blackstone Defaults On $562MM CMBS As It Keeps Blocking Investor Withdrawals From $71BN REIT
ZeroHedge – March 2, 2023
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R E G I O N A L   N E W S

Industrial Development Boom Comes To Chicago’s South Suburbs
Connect CRE – February 28, 2023
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Crow Holdings JV Completes DFW Industrial Project
Commercial Property Executive – February 16, 2023
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Core Industrial Markets Poised For Strong 2023
Globe St. – February 21, 2023
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Tesla To Bring Lithium Processing Plant Online In South Texas Later This Year
CoStar – March 2, 2023
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Cold Creek Solutions Sells 374,560 SF Cold Storage Facility In Denton, Texas
REBusiness Online – March 3, 2023
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