TAG Industrial Watch: October 14, 2023

Last week, we took a look at supply and demand figures for the third quarter that continue to show declines in the industrial real estate market. While the Federal Reserve’s rate hikes are no doubt impacting market fundamentals, the biggest casualty from the Fed’s war on inflation has been sales activity. During the third quarter, less than 2,000 industrial properties traded hands across the top 50 metros in the U.S., marking the lowest level since Q1 2012 (minimum 10,000 square feet). Year-over-year, transactions are down 47 percent as sellers’ expectations remain high. The median sale price climbed to about $120 per square foot in Q3, up 6.2 percent since the same period last year (CoStar). With the prime lending rate now at the highest level since 2001, it is painfully clear that there is a big disconnect between buyers and sellers. Until asking prices start to reflect our new economic reality, sales activity will unfortunately remain weak. The good news for long-term landlords is that property values are still at record highs, which means that those who act proactively and trim asking prices to generate more demand, can still walk away with hefty returns.

I N D U S T R I A L   N E W S

Industrial Sees Its Highest Level Of Deliveries To Date
Globe St. – October 5, 2023
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Shelter Costs Keep Inflation Elevated At 3.7% In September
Bisnow – October 12, 2023
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Wholesale Inflation In US Rises 2.2% In September,
Biggest Year-Over-Year Gain Since April

AP News – October 11, 2023
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Mack Truck Workers Reject Deal, Join Strike
Boston Herald – October 9, 2023
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R E G I O N A L   N E W S

Exxon Secures Lead In Top US Oilfield
With $60 Billion Buy Of Shale Rival Pioneer

Reuters – October 11, 2023
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Texas City Chemical Plant Trades For $500M
Connect CRE – October 2, 2023
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Principle Construction Corp. Constructing
Second Building For Alvil Trucking In Elgin

REjournals – October 9, 2023
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IOS Activity In DFW Slows As Stormy
Economy Spins Sector Off Course

Bisnow – October 5, 2023
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CanTex Capital Acquires Shallow Bay
Industrial Portfolio In Northeast DFW

Businesswire – October 4, 2023
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Ambrose Announces Completion Of First
Speculative Industrial Building At DIA Logistics Park

Mile High CRE – October 2, 2023
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