TAG Industrial Watch: March 18, 2023

In the Industrial Watch magazine that was published in July of 2022, TAG Industrial emphatically stated, “Since the Federal Reserve’s attempt to fight inflation will likely result in a financial crisis or recession, the Fed will be compelled to reverse course in the face of rising prices.”

Not only has the financial crises that TAG Industrial predicted come to fruition, but the Federal Reserve wasted no time in reversing its course despite the consumer price index still hitting 6%. In the process of bailing out Silicon Valley Bank and Signature Bank, the Fed’s balance sheet of credit soared by $297 billion in one week (FRED). To put that into perspective, aside from the onset of Covid-19, that is the biggest weekly increase on record, undoing all of the Fed’s work to reduce its balance sheet over the past 4 months.

As a result of the recent string of bank failures, commercial real estate lending is expected to tighten. With lending standards becoming more conservative, the recent historical decline in industrial sales (which was also forecasted in the July 2022 Industrial Watch) will likely continue. While it seems like a good time for industrial owners to sit on the sidelines for a better opportunity to sell, there are several reasons that suggest there is still no better time than today.

I N D U S T R I A L   N E W S

After Bank Meltdowns, Real Estate Lending Gets Even Tighter
CoStar – March 16, 2023
Read More

Inflation Gauge Increased 0.4% In February,
As Expected And Up 6% From A Year Ago

CNBC – March 14, 2023
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Banking Crisis Expected To Drag Commercial
Real Estate Values Down Even Further

Bisnow – March 16, 2023
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11 Banks Throw A $30B Lifeline To First Republic.
Expect A Volatile Ride For CRE

Globe St. – March 17, 2023
Read More

Six Reasons 2023 Is The Year Of The 1031 Exchange
WealthManagement.com – February 28, 2023
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R E G I O N A L   N E W S

San Antonio Industrial Building With
Big Name Tenant Changes Hands

Connect CRE – March 16, 2023
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MDH Buys El Paso Industrial Project Before Delivery
Commercial Property Executive – February 27, 2023
Read More

Kroger To Begin Last-Mile Delivery
Services In Northeast Austin

CoStar – February 22, 2023
Read More

First Phase Of Sun Empire Industrial
Development In Aurora Gets Underway

Mile High CRE – February 28, 2023
Read More

Naperville’s Crown Proposes 760-Acre
“Town Center” Project In Sugar Grove

The Real Deal – March 2, 2023
Read More