TAG Industrial Watch: May 6, 2023

In the midst of now the second largest bank failure in U.S. history, Federal Reserve Chairman Jerome Powell still contends that the banking system is sound and that the overall economy is strong. Well as the saying goes, “If you believe that, I have a bridge in Brooklyn to sell you.” With the collapse of First Republic Bank, total bank failures (in terms of assets held) now exceed all of 2008, and it’s only May. This is just another sign among many that the U.S. economy is not entering a mild recession, but an even greater recession than the one that was sparked by the 2008 Housing Crisis.

For industrial real estate owners, the good news is two-fold. While fundamentals are deteriorating at the fastest pace since 2009, the national vacancy rate is still sub-5%, and annual rent growth has only fallen to 9.7% (CoStar, Top 50 MSAs, minimum 15K SF). Also, when it comes to concerns over commercial real estate, office and retail are currently getting all the attention. But office and retail are only the weakest links in the chain. The boom in CRE that has taken place since the Great Recession has been largely concentrated in multi-family and industrial. This means that the bust will be felt the most in these industries as well. However, owners who act quickly still have an opportunity to take advantage of this misperception, before the inevitable recession exposes the truth.


I N D U S T R I A L   N E W S

First Republic’s Failure Leaves “Gaping Hole” In Market
The Real Deal – May 2, 2023
Read More

Commercial Real Estate Is Headed For A Crisis
Worse Than 2008, Morgan Stanley Analysts Say

USA Today – April 7, 2023
Read More

Industrial Sector Fundamentals Remain Solid
Commercial Property Executive – April 28, 2023
Read More

Sales Leaseback Demand May Have Just Gotten A Boost
Globe St. – May 2, 2023
Read More

With Occupancy High, Industrial REITs Prepare For
New Supply And The Vacancy That Comes With It

Bisnow – April 27, 2023
Read More

R E G I O N A L   N E W S

Target Selects Houston’s Generation Park For Next Distribution Center
Connect CRE – April 13, 2023
Read More

Westcore Enters Fort Worth Market
Commercial Property Executive – April 28, 2023
Read More

Residents Are Worried About Industrial Growth In Southeast
Fort Worth. How Will Council Candidates Handle It?

Fort Worth Report – May 3, 2023
Read More

List Of Most Endangered Places In Illinois Includes
Baxter Office Campus Eyed For Industrial Conversion

CoStar – May 4, 2023
Read More

West And Southwest Industrial Markets
Register Record Demand For Industrial Space

Mile High CRE – May 2, 2023
Read More