TAG Industrial Watch: August 9, 2025

Over the last week, much has transpired in the economy that has big implications for the industrial market. In the July jobs report, the highlight was the massive revisions for the months of May and June. The two-month period saw 258,000 jobs revised lower, leaving just 33,000 jobs created, which was the lowest back-to-back total in 15 years outside of the pandemic year of 2020 (CBS News). While President Trump responded to the disappointing revisions by dismissing the head of the Bureau of Labor Statistics, TAG has previously pointed out that downward revisions have been the norm for over two years, reminiscent of the Great Recession days. As promised, new tariff rates went into effect on August 7th, pushing the average effective tariff rate to 18.6% from 2.5% last year (The Budget Lab). This marks the highest level since 1933, when the Smoot-Hawley Tariff Act helped to deepen and prolong the Great Depression. Lastly, the Treasury Department announced that it will be issuing a record $1 trillion in short-term debt this quarter to not only cover federal spending but also repay the $400 billion borrowed from federal retirement programs and rebuild its rainy-day savings fund that helped float the government when borrowing was restricted due to the debt ceiling (Seeking Alpha).
The news of a weak jobs market, higher import prices, and likely higher interest rates (due to the crowding-out effect) may spell stagflation, but this news should also mean opportunity for the clients of TAG. In recent years, TAG has helped prepare its clients for this new economic environment. With industrial demand contracting, rents falling, and property values topping out, the time has come to consider specialized industrial properties that may not only help investors survive this economic storm but also thrive.

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I N D U S T R I A L   N E W S

The Labor Market Just Hit A Wall.
Here’s What Experts Say It Means
For The Economy And Your Job.
CBS News – August 4, 2025
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State Of U.S. Tariffs
The Budget Lab – August 7, 2025
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Treasury To Flood The Market With T-Bills
Seeking Alpha – July 31, 2025
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Japanese Farmers’ Bank Vows Caution
​​​​​​ After $12BN Loss From Treasuries Bet
Financial Times – August 2, 2025
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Goldman Sachs Warns Weak Housing
Sector Could Tip U.S. Toward Recession
GlobeSt.com – August 6, 2025
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R E G I O N A L   N E W S

MWI Property Group Breaks Ground
On 211-Acre Business Park
Connect CRE – July 29, 2025
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DWG Capital Partners Buys 131,061-Square-Foot
Industrial Facility In Breese
REjournals – July 28, 2025
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Houston-Based Lovett Industrial Making
Big Move Into Austin
Bisnow – July 15, 2025
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Alliance Industrial To Develop ​​Houston Campus
Commercial Property Executive – August 1, 2025
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DWG Capital Partners Buys 131K-SF ​​​Industrial
Facility In Sale-Leaseback
Connect CRE – July 29, 2025
Read More