TAG Industrial Watch: March 16, 2024

At the start of last year, TAG Industrial was perhaps the first to point out the historical divergence growing between small industrial and big-box warehouses. Now, media outlets like CoStar and Globe Street are beginning to take notice just as industrial real estate is on the verge of its first quarter of negative absorption since the economy was reeling from the Great Recession in Q1 2010. With only two months of the first quarter in the books, the national vacancy rate has climbed to its highest level since 2014, moving past 6.0 percent. Vacancies among big-box (over 200,000 SF) have leaped to about 8.0 percent, doubling the availability of small industrial (10,000 – 50,000 SF). Although small industrial is in better shape, the subtype leads the market in the wrong direction with over -11 million square feet of negative absorption (CoStar, Top 50 MSAs). Nonetheless, small industrial offers a variety of assets that have the potential to become a safe haven from an environment with rising vacancies and high inflation. Investors who want to go big this decade may need to think small and they can trust that TAG Industrial will continue to work hard to show them opportunities today what others will see tomorrow.

I N D U S T R I A L   N E W S

Industrial On Track To Deliver
Weakest Q1 Performance In A Decade

GlobeSt.com – March 11, 2024
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It’s Been A Year Since Silicon Valley Bank Went Bust.
Here’s What’s Changed For CRE — And What Hasn’t

Bisnow – March 7, 2024
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Wholesale Inflation Rose 0.6% In February,
Much More Than Expected

CNBC – March 14, 2024
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Inflation Ran Hotter Than Expected In
February As High Prices Persist

Fox Business – March 12, 2024
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R E G I O N A L   N E W S

Chicago Set New High In 2023
Industrial Construction Completions

Connect CRE – February 27, 2024
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3PL Provider Opens 2nd
Dallas Distribution Center

Commercial Property Executive – March 14, 2024
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Prologis Plans Mega-Warehouse
On 29-Acre Oakland Site

GlobeSt.com – March 7, 2024
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U.S. Crude Rises Above $80 As Oil
Supply Deficit Forecast For 2024

CNBC – March 14, 2024
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Brookfield Pays $98M For Industrial
Assets In Chicago Suburbs

The Real Deal – March 7, 2024
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