TAG Industrial Watch: December 30, 2023

When 2022 concluded, sales activity in the industrial market had already taken a sharp turn lower but overall market fundamentals remained strong. A year later, sales have dropped to levels not seen in over a decade and now industrial demand is quickly following suit. While the outlook for 2024 remains optimistic, the data is telling a very different story. Yes, industrial deliveries (largely consisting of big-box warehouses) are set to decline significantly from this year’s record-setting pace but are expected to still top any level before the start of the pandemic. Furthermore, the consensus that industrial demand will suddenly flatline doesn’t have much merit. Next year may indeed bring turbulence in the industrial market, but investors should take this as a good buying opportunity to reposition themselves into properties that will likely perform well in a high inflationary environment. Although the Consumer Price Index has decelerated in recent months after picking up speed earlier this year, the mere idea of the Federal Reserve cutting interest rates is driving the dollar down in foreign exchange markets and putting upward pressure on commodity prices.

I N D U S T R I A L   N E W S

Industrial Rent Growth Will Temper To Historical Averages Next Year
GlobeSt.com – December 18, 2023
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Commercial Real Estate Woes Are A Bankruptcy
Alarm For US Regional Banks
QZ.com – December 19, 2023
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Industrial’s Supply-Demand Should Balance By End Of 2024
GlobeSt.com – December 19, 2023
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Blackstone To Refinance 109-Property Industrial
Portfolio With New CMBS Loan
Bisnow – December 8, 2023
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Surging Ecommerce Sales? That’s Good. But $82.1 Billion
In Returns? That’s A Headache For Retailers
REjournals – December 20, 2023
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R E G I O N A L   N E W S

Principle Construction Completes Warehouse
For Seefried Industrial Properties
Connect CRE – November 20, 2023
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Arden Logistics Parks Acquires 34,700-Square-Foot
Service Facility, Outdoor Storage Asset In Addison
REjournals – December 14, 2023
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Leaked Memo Describes Amazon’s Plans For Beating
Expected Push Against SoCal Industrial Development
Bisnow – December 6, 2023
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Import Traffic Is Back On The Rise At The
Ports Of Los Angeles And Long Beach
CoStar – November 17, 2023
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C&T Design & Equipment Signs 19,886 SF
Industrial Lease In Northwest Houston
REBusiness – December 13, 2023
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