TAG Industrial Watch: April 15, 2023

When it comes to forecasting recessions, the Federal Reserve simply put has a horrible track record and is usually scared to even utter the “R” word. So, it was surprising that minutes from the Fed’s last meeting on interest rates showed that staffers at the central bank warned committee members of a mild recession during the second half of the year following the recent bank failures. Of course, the chairman of the Fed, Jerome Powell, still contends that the economy is strong and that banks are sound. But as indicated by bank lending contracting by a record $105 billion in just the last two weeks of March (FRED), it is far more likely that the U.S. will experience a severe recession as record debt levels are confronted by the highest interest rates in 15 years. For industrial real estate owners contemplating a sale, the big worry is that a credit crunch will choke off the supply of buyers. However, these landlords can avoid a credit crunch and still take advantage of historically high equity levels if they act soon, but time is of the essence.

I N D U S T R I A L   N E W S

Fed Expects Banking Crisis To Cause A
Recession This Year, Minutes Show
CNBC – April 12, 2023
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Banks Are Spooked And Getting Stingy About Loans –
And Small Businesses Are Suffering
NPR – April 10, 2023
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A Breakdown Of Lenders That Hold CRE Debt
Globe St. – April 13, 2023
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Billion-Dollar Manufacturing Investments
Run Into Real Estate Problems
Bisnow – April 13, 2023
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2023 REIT Returns
Commercial Property Executive – March 29, 2023
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R E G I O N A L   N E W S

Sought-After I-35 Corridor Site For New Industrial Project
Connect CRE – April 13, 2023
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Shifting Supply Chain Keeps Houston Industrial
Absorption Strong As Millions Of SF Deliver
Bisnow – April 5, 2023
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PCCP JV Breaks Ground On Chicago Spec Project
Commercial Property Executive – March 29, 2023
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Lovett Industrial And Cresset Partners Break Ground On
274,416 Square Foot Project In Dallas-Fort-Worth Area
The Eagle-Tribune – April 6, 2023
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MDH Partners Acquires Fort Worth Industrial
Building Leased To Samsung For $67.5M
REBusiness Online – April 7, 2023
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