TAG Industrial Watch: August 30, 2025

While most industry experts expected a rebound in the industrial market at the start of 2025 as deliveries cooled off, TAG predicted that “the market’s attention may turn from concerns of oversupply to falling demand.” A recent article by Globe Street, highlighting falling demand, could mark the change in market perception that TAG expected. As TAG previously reported, the article points out that net absorption turned negative in Q2 for the first quarter in over 15 years. This is important news for industrial landlords (both owner-users and investors) seeking to capitalize on historically high property values. The perception of weak demand and rising vacancy rates could easily impact commercial mortgage lending at a time when banks are sitting on $395 billion in unrealized losses, exponentially higher than levels seen during the Great Recession (FDIC). With industrial property values showing signs of peaking, it’s a good time for landlords, who are considering selling, to plan their exit strategy.

I N D U S T R I A L N E W S

Robust Industrial Leasing Masks
Weak Absorption, Rising Vacancies
GlobeSt.com – August 28, 2025
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US Manufacturing Expansion Stalls Amid
Fading Boost From CHIPS Act, Trade Uncertainty
CoStar – August 25, 2025
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Higher Tariffs Are Kicking In. Here’s What Walmart
And Other Retailers Said About Their Impact
CNBC – August 22, 2025
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US July Budget Deficit Up 20% Year-Over-
Year Despite Record Trump Tariff Income
Yahoo!News – August 12, 2025
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Canada Is Ditching Retaliatory Tariffs, But
Relief At The Grocery Store May Take Time
Financial Post – August 26, 2025
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R E G I O N A L N E W S

CRG Breaks Ground On 86K-SF
Industrial Facility Near Chicago
Connect CRE – August 4, 2025
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Constellation Real Estate Partners Acquires 15 Acres
In Texas For Development Of Class-A Industrial Building
REjournals – August 25, 2025
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Hillwood To Develop 2 Spec Buildings At AllianceTexas
Commercial Property Executive – August 28, 2025
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BKM Capital Underwriting ‘Significant’ NOI
Growth For Texas Light Industrial Acquisitions
GlobeSt.com – August 26, 2025
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Inside Texas Instruments’ $60 Billion U.S.
Megaproject, Where Apple Will Make iPhone Chips
CNBC – August 22, 2025
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