TAG Industrial Watch: March 23, 2024

When the Federal Reserve began to aggressively raise interest rates in the summer of 2022, TAG Industrial predicted at the time in our July issue of the Industrial Watch that “the Fed will probably abandon its fight (against inflation) to “rescue” the economy.” Our forecast is unfortunately coming to fruition. Just as commodity, wholesale, and consumer prices are all reaccelerating, the Fed has confirmed that it is done fighting inflation by hiking interest rates and intends to cut rates three times this year. With the total number of employed persons quickly trending toward negative territory year-over-year (a phenomenon that has only happened when the economy is in recession), this economy could easily be in an official recession before this year’s presidential election. It may be tempting for industrial real estate investors to wait until the Fed cuts to make their next investment but history shows that the Fed usually only makes big moves to lower rates when the economy is experiencing a financial crisis. As we all know, bank lending usually tightens during recessions, which would make commercial mortgages scarce. Investors who rely heavily on leverage should consider if today’s environment is better to secure a loan than one with a potential financial crisis.

I N D U S T R I A L   N E W S

Fed Holds Rates Steady And Maintains
Three Cuts Coming Sometime This Year

CNBC – March 20, 2024
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US Wholesale Prices Picked Up In February In
Sign That Inflation Pressures Remain Elevated

AP News – March 14, 2024
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Stagflation Is A Real Possibility To These Analysts
GlobeSt.com – March 18, 2024
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Crude Oil Prices Today: WTI Prices Are Up 10.97% YTD
USA Today – March 21, 2024
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2024 CMBS Delinquency Rates
Commercial Property Executive – February 28, 2024
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R E G I O N A L   N E W S

Digital Realty, Mitsubishi Join Forces
On Two Dallas Data Centers

Connect CRE – March 4, 2024
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Centersquare, PAGEWOOD Acquire 621,000-Square-
​​​​​​Foot Industrial Portfolio In Houston Market

REjournals – March 20, 2024
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Houston Industrial Developers Plan For Next Demand
Cycle As Smaller Tenants Boost Absorption

Bisnow – March 7, 2024
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Prologis Sells Denver Industrial Park
Commercial Property Executive – March 19, 2024
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Dallas-Fort Worth Leads All Metro
Areas In Population Growth

NBC DFW – March 14, 2024
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