TAG Industrial Watch: December 16, 2023

It is no secret that 2023 was a forgettable year for the commercial real estate industry as a whole. The market has seen transaction volume plummet, vacancy rates rise, and rent growth stall out. However, through the dark clouds looming over the CRE industry, a glimmer of light can be seen in the industrial sector. With record supply hitting the market over the last year, vacancy rates have climbed in many industrial markets. However, fear of oversupply has caused construction starts to plummet. This trend can be seen as the Q3 construction pipeline shrank 17 percent from its mid-2023 peak. Furthermore, data indicates that fourth-quarter deliveries will peak at 180 million square feet, and subsequently fall 71 percent by Q4 2024 (GlobeSt.com). While the fall in construction starts is a sign of weakening demand, the decline in deliveries could hold vacancy rates in check, and aid the industrial market’s return to health. While the outlook for CRE remains bleak, the industrial sector has so far outperformed other asset classes in CRE.

I N D U S T R I A L   N E W S

Expert: Don’t Worry About The Pause In Warehouse Construction
GlobeSt.com – December 4, 2023
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Industrial Sector Maintains Momentum Despite Rise
In Vacancy Rates, According To Commercial Edge

REJournals – December 12, 2023
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Industrial Sector Maintains Momentum Despite Uptick In Vacancy Rates
CommercialEdge.com – November 27, 2023
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Dollar Drops As Fed Signals Coming Rate Cuts
Reuters – December 13, 2023
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EV Boom Reshapes US Industrial Landscape
Commercial Property Executive – December 4, 2023
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R E G I O N A L   N E W S

Blackstone Acquires 1.4M SF DFW Warehouse
Portfolio As Manufacturing Moves Closer To Home

Bisnow.com – December 7, 2023
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Hines Breaks Ground On 684 KSF Austin Industrial Center
Commercial Property Executive – November 30, 2023
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Brinkmann Constructors Completes Two Spec Industrial
Buildings Totaling 1.2 MSF in Kenosha, Wisconsin

REBusinessOnline.com – December 11, 2023
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iBorrow Closes Refi Of Four-State Industrial Portfolio
Connect CRE – December 8, 2023
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Newly-Formed Real Estate Developer Acquires 31 Acres In Arvada
Mile High CRE – December 5, 2023
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