TAG Industrial Watch: December 9, 2023

After topping out at 5%, the interest rate on the 10-year Treasury note has fallen to 4.2% as bond investors make bets that the Federal Reserve will begin cutting interest rates early next year. While bond investors are probably right, they are likely right for the wrong reasons. Despite the perception of the economy being resilient in the face of 15-year high-interest rates and that the Fed has won the war on inflation, the anecdotal evidence that we have covered all year long says otherwise. Nonetheless, industrial owner-users should not look a gift horse in the mouth. While the positive sentiment lasts, owner-users should take advantage of lower interest rates to attract sale-leaseback buyers. Given that the economic environment is likely to get worse, lower interest rates present a good opportunity to raise capital that can help maintain business operations in tough times.

I N D U S T R I A L   N E W S

Markets Aren’t Always Right About Rate Cuts
GlobeSt.com – December 7, 2023
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US Bond Investors Brace For Fed Rate Cuts In 2024
Reuters – December 1, 2023
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E-Commerce Continues To Fuel Industrial Expansion
Commercial Property Executive – November 28, 2023
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These Three US Postal Codes Have The Most
Available Industrial Space Under Construction
CoStar – November 29, 2023
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U.S. Payrolls Rose 199,000 In November,
Unemployment Rate Falls To 3.7%
CNBC – December 8, 2023
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R E G I O N A L   N E W S

‘People Don’t Realize How Huge It Is’: Trade With
Mexico A Growing Tailwind For Texas Industrial
Bisnow – November 29, 2023
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Quilvest, Axis Launch $500M Industrial Outdoor Storage JV
Commercial Property Executive – December 7, 2023
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Phoenix And Dallas-Fort Worth Lead 20 Largest Industrial Markets In Demand
CoStar – December 1, 2023
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$1.9 Million SF Industrial Buildings On IH-20 Ready For Tenants
City of Mesquite – November 27, 2023
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Real Estate Owner & Operator Basis Industrial Closes On/Purchases
Four Assets And Refinances Two Assets, Totaling
1,328,443-Square-Foot Portfolio In $220 Million Transaction
PR Newswire – December 4, 2023
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