TAG Industrial Watch: May 4, 2024

On one hand, the Federal Reserve is trying to remain tough on inflation, which is why it left its benchmark interest rate unchanged this week. On the other hand, the Fed likely recognizes that America’s over-indebted economy is dependent upon cheap money and could at some point reach a breaking point. This is why the Fed announced that it will scale back on the amount of Treasuries it allows to mature off its balance sheet to the tune of $35 billion each month; in other words, less pressure on market rates but more pressure on inflation. The Fed will probably still marginally cut rates later this year to prop up the economy. However, its decision to slow its balance sheet reduction puts it one step closer to blowing it back up, which could likely result in higher prices and higher interest rates in the future.

Before this likely reality sets in, industrial investors should consider how to inflation-proof their portfolios by investing in specialized facilities. In recent years, cold storage properties have been a popular solution as more customers choose online grocery delivery. Although these properties usually cater to larger institutional investors, there are plenty of specialized properties that offer the same advantages for small investors that can be found in the manufacturing industry for example.

I N D U S T R I A L   N E W S

Fed Keeps Rates Steady As It Notes
Lack Of Further Progress On Inflation

CNBC – May 1, 2024
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Powell: Rate Hike ‘Unlikely’ Next
Move As Hope For Cuts Fades

Bisnow – May 1, 2024
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Prologis Warns Of Slowing Industrial
Real-Estate Market

The Wall Street Journal – April 17, 2024
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Online Grocery Sales To Grow
3X Faster Than In-Store

GlobeSt.com – May 2, 2024
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Why Cold Storage Is Getting Hotter
Commercial Property Executive – May 1, 2024
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R E G I O N A L   N E W S

H-E-B Building 500 Acre Distribution Center
Connect CRE – April 26, 2024
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New Technology Park In Allen, Texas, Aims
To Meet Area’s Rising Industrial Demand

Bisnow – March 28, 2024
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Chicago Industrial Market Outshines The Rest Of The Midwest
Commercial Property Executive – April 25, 2024
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“I’m Worried…[About] Four More Years” – Dallas Fed
Manufacturing Contracts For 24th Straight Month

ZeroHedge – April 29, 2024
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LaPour Acquires Prime 6.3-Acre Parcel For
New Infill Flex Industrial Project

Mile High CRE – April 18, 2024
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