TAG Industrial Watch: January 27, 2024

While the recent GDP report shows that the economy remained resilient in 2023, growing by 2.5% (Forbes), anecdotal evidence revealing that the economy is in decline continues to pile up. For example, on the same day the GDP report was released, Tesla announced that its fourth-quarter earnings collapsed by 40% annually and issued a warning of slowing sales to investors (CNN). For the industrial real estate market, the slowdown in electric vehicle sales will have a resounding impact. Consider that most of the newly built factories in the U.S. have been dedicated to the EV market, supporting many more industrial suppliers throughout the nation. Simply put, lower EV sales mean less demand for industrial real estate. Despite what the government reports, businesses are well aware that trouble is brewing throughout the economy and although we hope for the best, the time is now to prepare for the worst. For industrial landlords, conducting a sale-leaseback is an excellent way to raise a significant amount of capital to weather an economic storm. Historically high property values may not last long, so industrial owner-users should act promptly to take advantage.

I N D U S T R I A L   N E W S

U.S. Economy Grew 2.5% Last
Year, Defying Recession Calls
Forbes – January 25, 2024
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Tesla Shares Plunge To Wipe Out $73 Billion
In Market Value, After Dour Earnings Call
CNN Business – January 25, 2024
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Disruptions With Panama, Suez
Canals Means Trouble For CRE
GlobeSt.com – January 25, 2024
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Prologis Predicts Lower Occupancy, Slower
Cash Flow On Softening Industrial Market
Bisnow – January 17, 2024
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What’s Next For Industrial Real Estate?
Commercial Property Executive – January 9, 2024
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R E G I O N A L   N E W S

Bridge Industrial Acquires Development
Site In I-55 Submarket
Connect CRE – January 22, 2024
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Chicago Industrial Market ‘Flattening’
As Pandemic Bubble Deflates
Bisnow – January 21, 2024
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EQT Exeter Sells Indianapolis Industrial Asset
Commercial Property Executive – January 4, 2024
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Glut Of Warehouses Arrive As
Vacancy Rises In Inland Empire
GlobeSt.com – January 9, 2024
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Link Logistics Completes 778,950 SF
Industrial Project In The Colony, Texas
REBusiness Online – January 17, 2024
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