TAG Industrial Watch: December 23, 2023

You may have noticed something different this holiday season when shopping online. Instead of shipping products directly to your house from a big-box warehouse sitting 20 miles outside of the city, many retailers like Walmart deliver straight from their retail locations with ample warehouse and shelf space. While this may be a good move for retailers as it reduces their costs for warehouse space, this is not so good news for the industrial real estate market, particularly for big-box warehouses. By now, it’s become well-acknowledged that record speculative developments are creating an unprecedented gap between supply and weakening demand. Historically, demand for retail space and warehouses has gone hand-in-hand. However, if this trend of using existing retail space to facilitate home deliveries continues, the divergence will only widen between big-box warehouses and small industrial properties, creating investment opportunities for the latter.

I N D U S T R I A L   N E W S

Walgreens, Target Push To Handle More Deliveries In Stores, Not Warehouses
Bisnow – November 15, 2023
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Was There Over-Speculation In The Industrial Real Estate Market?
Propmodo.com – December 18, 2023
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Amazon Listing More Of Its Big, New Warehouses For Sublease
Bisnow – November 16, 2023
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Rising Vacancy Rates Is Key Macro Trend For Industrial
GlobeSt.com – December 12, 2023
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The Fed Holds The Line On Interest Rates Again. What’s Next?
Commercial Property Executive – December 13, 2023
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R E G I O N A L   N E W S

KC-Based Hunt Midwest Completes Industrial Build In Florida
Connect CRE – December 8, 2023
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The Industrial Market’s Secret Sauce? Patience, And Lots Of It
REjournals – December 20, 2023
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Blackstone Acquires 1.4M SF DFW Warehouse Portfolio
As Manufacturing Moves Closer To Home

Bisnow – December 7, 2023
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Developer To Raze Dallas-Area Office Building
To Make Way for New Industrial Hub

CoStar – December 18, 2023
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Dermody Scraps Office-To-Industrial Conversion Plans In Glenview
The Real Deal – December 13, 2023
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