TAG Industrial Watch: February 3, 2024

As expected, the Federal Reserve held steady on interest rates this past week and surprisingly poured cold water on the idea of cutting rates during their next meeting in March. Regardless of when the Fed decides to cut rates, the central bank likely won’t be cutting them in response to slowing inflation but a weakening economy. Jerome Powell continues to speak highly of the economy, taking every moment to tout its strength. Unfortunately, reality continues to disagree with the Fed chairman as 642 corporations filed for bankruptcy in 2023, topping the outbreak of the pandemic and representing the highest level since 2010 (S&P Global). This is partly why the Challenger Report shows the fewest planned hirings for a January since its inception in 2009 (CNBC). The month of January was tough even for the industrial real estate market with net absorption dipping well into negative territory to the tune of 29 million square feet (CoStar, Top 50 metros). By the time the Fed gets around to cutting rates, the recession (that nearly all of the experts have written off) may finally become clear for everyone to see. So, for industrial landlords or investors waiting for rate cuts, the best time to secure buyers or financing may just be during today’s perceived strength instead of tomorrow’s evidential weakness.

I N D U S T R I A L   N E W S

News Wrap: Federal Reserve Holds
The Line On Interest Rates

PBS – January 31, 2024
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US Bankruptcies Hit 13-Year Peak In
2023; 50 New Filings In December

S&P Global – January 9, 2024
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January Hiring Was The Lowest For The
Month On Record As Layoffs Surged

CNBC – February 1, 2024
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UPS To Cut 12,000 Jobs, As 2024
Revenue Outlook Disappoints

MarketWatch – January 30, 2024
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Fewer Mega Industrial
Leases Getting Signed

GlobeSt.com – January 29, 2024
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R E G I O N A L   N E W S

NORKOL Relocates Corporate HQ
To CenterPoint 88 Industrial Center

Connect CRE – January 31, 2024
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The Top 100 Industrial Leases Of 2023?
Tenants Didn’t Go As Big Last Year

REjournals – February 1, 2024
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Alterra, ConGlobal Partner On
Outdoor Storage Portfolio

Commercial Property Executive – January 12, 2024
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Barber Scores $57M Construction
Loan For Plainfield Industrial

The Real Deal – January 16, 2024
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Carter Exchange Acquires Absolute Net-Leased
​​​​​Industrial Property In Texas For DST Offering

PR Newswire – January 23, 2024
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