TAG Industrial Watch: September 28, 2024
Despite economic data that should concern, top Wall Street investors remain optimistic, with the exception of one important figure. Jamie Dimon, the president of the world’s largest bank – JPMorganChase, recently shared his expectations. When it comes to stagflation, an economic environment with recession and high inflation, Dimon stated that he, “wouldn’t take it off the table” (CNBC). If you’ve been following TAG’s research over the last couple of years, you are aware that we consider stagflation a likely outcome. When it comes to industrial real estate, there are warning signs already showing.
Annual industrial demand is already at the lowest level since 2011 and continues to fall but equally concerning, annual rent growth is decelerating at an alarming rate. At 3.2%, asking rents have increased at their slowest pace since Q3 2013 and the growth rate is projected to dip into negative territory by the end of Q1 2025. While the annual increase in the consumer price index (CPI), recently slipped to 2.5%, high inflation is fundamentally still a threat to the U.S. economy as Jamie Dimon has indicated. If and when the CPI picks up as rents fall, industrial investors will personally have to contend with stagflation. This is why owning specialized industrial facilities that give landlords pricing power will be essential to building an industrial portfolio that will not only survive but thrive in such an environment.
I N D U S T R I A L N E W S
Jamie Dimon Is Still A Skeptic On The Economy
GlobeSt.com – September 26, 2024
Read More
Jamie Dimon Says ‘The Worst Outcome Is Stagflation,
A Scenario He’s Not Taking Off The Table
CNBC – September 10, 2024
Read More
Industrial Developers Stalk Toxic
Land As Available Sites Dwindle
Bisnow – September 24, 2024
Read More
Why Light Industrial Properties
Will Continue To Shine
Commercial Property Executive – September 12, 2024
Read More
What The Interest Rate Cut Means
For Commercial Real Estate
Business Report – September 23, 2024
Read More
R E G I O N A L N E W S
Cresset Real Estate Partners Closes Largest Spec
Industrial Lease In Houston’s History
REjournals – September 26, 2024
Read More
Satellite-Maker Aerospacelab Leases Space In Torrance
For Manufacturing Facility, U.S. Headquarters
In Missouri To Boost Further Port Development
Bisnow – September 23, 2024
Read More
State To Set Warehouse Site Standards In California
GlobeSt.com – September 11, 2024
Read More
Lovett Industrial And PCCP, LLC Break Ground On A 14-Acre,
241,000-Square-Foot Industrial Business Park In Garland, TX
Businesswire – September 5, 2024
Read More
Outpost Expands National Presence With
4 New Truck Yards In Major Freight Corridors
PR Newswire – September 19, 2024
Read More