TAG Industrial Watch: April 1, 2023

When it comes to supply and demand, the industrial real estate market just experienced its worst quarter since the depths of the Great Recession, and no, this is not an April Fools’ joke. While there’s more data coming in, the national vacancy rate just shot up by about 45 basis points, representing the largest quarterly increase since Q2 2009 (CoStar, Top 50 MSAs, min 15K SF). However, the pain is not being equally felt across the board. Just as TAG predicted in the January issue of the Industrial Watch magazine, small industrial properties, while not going unscathed, are outperforming big-box warehouses.

Among industrial properties sized 15,000 to 50,000 square feet, the vacancy rate rose by 36 basis points as net absorption dropped into negative territory. Meanwhile, new deliveries of properties over 200,000 square feet soared past demand, increasing the vacancy rate of big-box warehouses by 53 basis points. Nonetheless, the vacancy rate across the board remains in low territory at 4.5 percent, still giving owners an opportunity to take advantage of historically high equity levels. However, this pick-up in vacancies is likely just the beginning as the economy has yet to feel the full impact of the Fed’s rate hikes.

I N D U S T R I A L   N E W S

Industrial Sales Off Significantly For First Two Months Of The Year
Globe St. – March 31, 2023
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Why Fed Rate Increases Are Hitting All At Once
WealthManagement.com – March 20, 2023
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Turnbridge Equities The Latest Firm To Chase
Industrial Outdoor Storage With First Acquisition
Bisnow – March 23, 2023
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Semiconductor Boom Continues to Boost CRE
Commercial Property Executive – March 28, 2023
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R E G I O N A L   N E W S

Industrial Leasing In Chicagoland Still Playing
A Hot Hand As Other Sectors Limp Along
Bisnow – March 22, 2023
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Top 5 Markets For Industrial Transactions
Commercial Property Executive – March 21, 2023
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Industrial Locations That Might See A
Slowdown In An Economic Downturn
Globe St. – March 22, 2023
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Hayes Co. Signs 900,000 SF Industrial Lease In Metro Dallas
REBusiness – March 8, 2023
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Emerald Creek Capital Opportunity Fund Closes
57,000 SF Industrial Acquisition In Fort Worth, TX
PR.Com – March 22,2023
Read More