TAG Industrial Watch: February 17, 2024

Given the reduction in industrial demand, a slowdown in supply is welcomed news these days when it comes to keeping a lid on vacancy rates. Unfortunately, while new supply is declining from record highs to pre-pandemic levels, old supply is already in record territory and rising. Since 2021, the supply of industrial sublet space has tripled to about 156 million square feet (Bisnow). At 10.6%, sublet space is also at a record high as a share of total space available and nearly double the rate in 2021 (CoStar, Top 50 metros, min 10,000 sf). As retail sales continue to fall despite prices rising, more sublet space is likely to pour onto the market as retailers rent out their unused space. The notion that the industrial market is “returning to normalcy” may not last much longer as reality sinks in. For industrial landlords considering a sale, it’s still a good time to take advantage of historically high property values while they still last.

I N D U S T R I A L   N E W S

U.S. Industrial Sublease Availability
Hits Record-High 156M SF

Bisnow – February 14, 2024
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Prices Rose More Than Expected In
January As Inflation Won’t Go Away

CNBC – February 13, 2024
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US Retail Sales Declined In January
By Much More Than Expected

CNN Business – February 15, 2024
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Industrial Sector Set For 2024 Transformation
Commercial Property Executive – February 14, 2024
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More Multistory Industrial Buildings
Are Coming. What Will That Mean?

GlobeSt.com – January 16, 2024
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R E G I O N A L   N E W S

SpaceX Planning $100M Brownsville Facility
Connect CRE – February 15, 2024
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Industrial Outdoor Ventures Closes
Outdoor Storage Lease In Dallas

REjournals – February 12, 2024
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After Almost 17 Years On The Market,
330-Acre Site Finally Sells

Bisnow – February 13, 2024
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Triten Buys Houston Industrial Portfolio
Commercial Property Executive – February 6, 2024
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Loveland Project Among Largest
Industrial Developments Due In 2024

Mile High CRE – February 13, 2024
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