TAG Industrial Watch: August 31, 2024
If you are a client of TAG Industrial, you understand how much America’s industrial real estate depends on the nation’s ability to import. Through the first half of the year, (real) imports rebounded, rising 3.0% over the level recorded in H1 2023 after accounting for a slight increase in import prices (Census Bureau, FRED). Despite the increase in overall shipping activity that has helped keep availability relatively tight in key port markets, vacancies have noticeably risen. For example, in Laredo, the nation’s largest inland port, vacancies doubled in H1 largely thanks to an influx of new deliveries. At 4.8%, Laredo’s vacancy rate set a new high since records began in 2007 and sits well above the 0.9% low posted in Q3 2022. In Los Angeles, which has long served as the gateway for imports from the East, vacancy rates were up 120 basis points to 5.4% in H1, significantly above its record low of 1.7% posted in Q1 2022 (CoStar). Nonetheless, port markets like Laredo and L.A. are still outperforming the overall industrial market and offer great buying opportunities, particularly among the small industrial type that can benefit from a future increase in exports and currently feature lower vacancies.
I N D U S T R I A L N E W S
U.S. Container Imports Continue To
Show Robust Growth Over 2023
GCaptain – July 10, 2024
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Foreign Direct Investment Hits Record
$31B In Mexico In First Half Of 2024
Freight Waves – August 28, 2024
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Mortgage Originations Are Up 27% From Prior Quarter
GlobeSt.com – August 22, 2024
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DXY: Dollar Index Finds Support in Double
Bottom At 100.60. Now, It’s Battle Time.
Trading View – August 28, 2024
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Industrial Development Pipeline Shrinks
Commercial Property Executive – July 29, 2024
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R E G I O N A L N E W S
Texas Industrial Pipeline Takes A Dip
Connect CRE – August 9, 2024
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Lovett Industrial Completes 201,329 SF
Broadway Logistics Center In Denver
REBusiness – August 21, 2024
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Rate Cuts Likely To Get Chicago’s Industrial Engine
Turning Again, But A Space Gap Looms
Bisnow – August 23, 2024
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Trammell Crow Breaks Ground On
1.4 MSF Houston Industrial Park
Commercial Property Executive – August 27, 2024
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Here Are The Top Cities For Job Growth
GlobeSt.com – August 22, 2024
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