TAG Industrial Watch: April 27, 2024

Unlike office, industrial real estate values have withstood the impact of the pandemic and rising interest rates (so far) but the industry is unintentionally becoming a victim of its own success. A recent article by Bisnow highlights the issue where in Dallas the Central Appraisal District released estimates for industrial values, showing skyrocketing increases of between 53% and 70%. Given that previous appraisals showed little increases in comparison, the recent uptick is more about a catch-up. Unfortunately, higher appraisals across the nation equating to higher property taxes couldn’t come at a worse time. Industrial demand and sales activity in the U.S. are at their lowest levels in at least 13 years and rent growth is quickly decelerating. Meanwhile (as indicated by the Q1 report of Gross Domestic Product), the economy is steadily showing signs of stagflation, just as TAG forecasted. Faced with skyrocketing property taxes, industrial owner-users and investors will have tough decisions to make in a challenging business environment. Of course, the good news is that property values are still historically high, giving landlords a good opportunity to take advantage of built-up equity.

I N D U S T R I A L   N E W S

U.S. Growth Slowdown, With Inflation Spike,
Raises Early Stagflation Risks

The Street – April 25, 2024
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Finding New Investment Value In
Industrial Outdoor Storage

GlobeSt.com – March 25, 2024
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Deadly Baltimore Bridge Collapse Is Latest
hipping Snafu That Could Push Up Inflation

Bisnow – March 27, 2024
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Here’s What Some Top Tenant Reps Expect On
US Industrial Property Performance In 2024

CoStar – April 18, 2024
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Something Strange Has Been Happening
With Jobless Claims Numbers Lately

CNBC – April 19, 2024
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R E G I O N A L   N E W S

Industrial Owners In Dallas See Huge Value
Increases, Warn Of Potential Shockwaves

Bisnow – April 24, 2024
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Multi-Tenant Industrial Building
In Bridgeview Sells

Connect CRE – April 24, 2024
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Contegra Completes 220,000-Square-Foot
Precoat Facility In Missouri

REjournals – April 23, 2024
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EQT Exeter REIT Buys Austin
Industrial Asset For $61M

Commercial Property Executive – March 26, 2024
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Window Manufacturer To Bring 504 Jobs To Mansfield
With Manufacturing Plant, Regional Headquarters

Fort Worth Report – April 23, 2024
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