TAG Industrial Watch: April 29, 2023
This week’s release of the Gross Domestic Product (GDP) report for the first quarter shows that economic activity continues to slow down at just 1.1%, trending downwards for three consecutive quarters. The biggest contributor to the first quarter’s slowdown was business inventories which increased by only $6.8 billion at an annualized rate. This is a sharp decline from the $257.4 billion buildup of inventories a year ago (Bureau of Economic Analysis).
For the industrial real estate market, the falloff in inventories equates to less warehouse demand. Given that a record 801 million square feet of new industrial space is slated to hit the market this year, lower demand will soon become problematic (CoStar). While the overall industrial industry is weakening, some markets are actually performing well. For example, the oil-dominant markets of Midland and Odessa, Texas are experiencing a sizeable reduction in vacancy rates and there is only a small amount of industrial space under construction. As the economy continues to slow down, industrial real estate investors will have to refocus in order to stay ahead of the market.
I N D U S T R I A L N E W S
U.S. GDP Rose At A 1.1% Pace In The First Quarter
As Signs Build That The Economy Is Slowing
CNBC – April 27, 2023
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The Fog Thickens: The Commercial Real
Estate Outlook After The First Quarter
EisnerAmper – April 18, 2023
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4 Things You’re Underestimating About Industrial
Globe St. – April 28, 2023
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Manufacturing’s Comeback Boosts Industrial Space Demand
Commercial Property Executive – March 30, 2023
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West Coast Ports Suffering As US Container Imports Plunge By 37%
The Load Star – March 20, 2023
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R E G I O N A L N E W S
Vantrust Breaks Ground On 2.4M SF Of Spec Industrial In KC Metro
Connect CRE – April 27, 2023
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FreezPak Logistics Building Its Largest
Industrial Facility To Date In Houston Area
Bisnow – April 18, 2023
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Ledo Capital JV to Develop Austin-Area Industrial Park
Commercial Property Executive – April 14, 2023
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DMN: General Dynamics Selects Mesquite Industrial
Park For New Artillery Casings Plant
Dallas Innovates – April 25, 2023
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Plans To Redevelop 101-Acre Baxter Campus Near
Chicago Highlight US Office-to-Industrial Tensions
CoStar – April 25, 2023
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