TAG Industrial Watch: November 11, 2023

When it comes to economic bellwethers, shipping is a key indicator of things to come. In just this past week, one of the largest container shipping companies, Maersk, announced the layoffs of 10,000 employees, meanwhile, the largest air cargo carrier, FedEx, recommended that its pilots find work with American Airlines due to falling shipments. For the industrial real estate market, fewer goods shipped mean less demand for warehouse space. While this will certainly impact the entire industrial market, big-box warehouses and logistics facilities will likely feel the brunt end of the stick. With new deliveries of big-box properties set for record highs in the fourth quarter, the divergence between small industrial will probably widen even further. Slowly but surely, market analysts are beginning to notice this divergence that we have been pointing out all year. But before this divergence begins to make headlines, commercial real estate investors have the opportunity now to reposition their portfolios before small industrial (especially specialized facilities) become the next hot investment.

I N D U S T R I A L   N E W S

Shipping Giant Laying Off 10,000 As Pandemic Boom Turns To Bust
CNN Business – November 3, 2023
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Fedex Tells Pilots To Switch To American Airlines Feeder Operator
Freight Waves – November 5, 2023
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Most of Retail Shrink May Occur In The Supply Chain
GlobeSt.com – October 16, 2023
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Industrial Property Values Sink By 9% As Demand Dries Up
Bisnow – November 8, 2023
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Blackstone Earnings Drop As Real Estate
Marks the Firm’s Worst-Performing Segment

CoStar – October 19, 2023
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R E G I O N A L   N E W S

Houston Distribution Center

Connect CRE – November 8, 2023
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Industrial Absorption Plummets In
Denver Amid Slowing Demand

Bisnow – October 24, 2023
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Houston Industrial Demand Is Dropping
Off Faster Than Its Supply Pipeline

Bisnow – October 22,2023
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Texas Instruments Launches $11B Chip Plant
Commercial Property Executive – November 6, 2023
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Siemens Creates 700 Jobs At New $150 Million
Fort Worth Manufacturing Facility 

DMagazine – November 3, 2023
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