TAG Industrial Watch: July 15, 2023

This past week, the newly released Consumer Price Index showed that prices decelerated to just 3.0% in June compared to last year. The same “experts” who called inflation “transitory” and downplayed the possibility of an interest rate-induced financial crisis a year ago wasted no time in taking a premature victory lap. The experts have now proclaimed that the Federal Reserve’s fight against inflation has been won. Ironically, the news of the CPI sent the U.S. dollar tanking against foreign currencies, pushing up the price of commodities from gold to oil. Unfortunately, the experts are probably wrong again as this CPI will likely represent the bottom of price inflation and will start to move higher in the coming months.

It was precisely at this time last year that the CPI flatlined through the second half of 2022. However, consumer prices have made a 180-degree turn in 2023, rising at an annualized pace of 5.7% based on the first six months. If the dollar’s long-anticipated slide has indeed arrived, the CPI will shock the financial community by the end of the year. For industrial landlords considering a sale, it’s a good time to take advantage of falling inflation expectations. Once the financial community wakes up to the reality that the worst of inflation is not behind us, but dead ahead, interest rates could soar. Consequently, industrial demand will probably take another hit.

I N D U S T R I A L   N E W S

Inflation Rose Just 0.2% In June, Less Than Expected\
As Consumers Get A Break From Price Increases

CNBC – July 12, 2023
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CREFC Panelist: Lenders Not Extending CRE Loans Easily
GlobeSt.com – June 28, 2023
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‘Power Is The New Parking’: What Companies Want Most
In Their Industrial Space Is Rapidly Shifting

Bisnow – July 4, 2023
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The Rise Of Co-Warehousing: What’s The Appeal?
Commercial Property Executive – July 12, 2023
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Property Lending Early This Year Could Be
Forerunner Of Things To Come

CoStar – July 13, 2023
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R E G I O N A L   N E W S

Kraft Heinz Invests $400M For Massive
Distribution Center Developed By TCC

Connect CRE – July 13, 2023
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MDH Partners Acquires 600,000-Square-Foot
Industrial Building In Houston

REJournals – June 27, 2023
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Dynamic Shifts In Western Industrial Markets
GlobeSt.com – June 29, 2023
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These 10 States Are Running America’s
Best Economies For Residents

CNBC – July 13, 2023
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Manufacturer To Close Dallas Plant,
But Keep Headquarters In The Big D

CoStar – July 7, 2023
Read More