TAG Industrial Watch: September 21, 2024

The long-anticipated interest rate cut by the Federal Reserve has finally come in the form of 50 basis points to its benchmark lending rate between banks, ranging between 4.75% and 5.00%. Following the Fed’s rate cut, interest rates on government debt and mortgage rates actually climbed higher as key commodity prices jumped. If the reaction to the Fed’s rate cut becomes a trend, TAG’s concern that lower rates by the Fed may not lower market rates will unfortunately become a reality. Industrial real estate investors dependent upon leverage only need to revisit the Great Recession to see why it might be better to secure a loan today than wait. In September 2007, the Fed began cutting its benchmark rate from 5.25% to 0% by November 2008. However, commercial mortgage rates remained elevated as a credit crunch swept throughout the economy. With $1 trillion interest payments pushing up the national debt and usurping capital in the financial system (an economic effect known as “crowding out”), there will be plenty of upward pressure on market interest rates no matter what the Fed does.
 

I N D U S T R I A L   N E W S

Fed Slashes Interest Rates By A Half Point, An Aggressive
Start To Its First Easing Campaign In Four Years
CNBC – September 18, 2024
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Industrial Absorption Set To Grow
On Rate Drop Expectations
GlobeSt.com – September 3, 2024
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Real Estate Industry Hopes Lower
Borrowing Costs Will Bring Better Times
CoStar – September 18, 2024
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Gross Interest Payments On US Debt Topped $1 Trillion
The Hill – September 16, 2024
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Trump Tariffs Will Fuel Supply Chain Inflation And
Consumers Will Pay The Price, Trade Experts Warn
CNBC – September 11, 2024
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R E G I O N A L   N E W S

American Machine Works Sells 16K-SF Warehouse In Indiana
Connect CRE – September 18, 2024
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Jefferson County Port Authority Purchases 18 Acres
In Missouri To Boost Further Port Development
REjournals – September 17, 2024
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CapRock Plans Dallas-Fort Worth Industrial Park
Commercial Property Executive – September 16, 2024
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State to Set Warehouse Site Standards In California
GlobeSt.com – September 11, 2024
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Investors Bank On Dallas-Fort Worth Region’s Industrial Strength
CoStar – September 17, 2024
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