In about a month, Federal Reserve officials will meet to discuss interest rates as usual, and Wall Street is betting big on the Fed to implement a new round of cuts on bank-to-bank lending rates, theoretically leading to lower interest rates throughout the economy. If this sounds familiar, that is because this was the storyline exactly one year ago. And just like last year, TAG is again warning industrial investors to be prepared for higher interest rates on commercial real estate mortgages despite rate cuts. The same market forces that pushed up lending rates last year after the Fed cut rates are still in place this year, except they have been amplified. As the federal government seeks to borrow $1.6 trillion in the second half of 2025, usurping a significant amount of capital from the financial markets without the presence of the Fed adding liquidity, the crowding-out effect is well in play. Compounding this economic phenomenon is the recent decline in the dollar’s exchange value, which is creating an incentive for foreign Treasury investors to sell their bonds. While it is certainly possible for mortgage rates to initially fall, industrial investors should be cautioned that this will likely be a temporary retreat. With industrial property values showing signs of peaking during the first half of the year, it may be a good idea for investors to consider buying or selling sooner rather than later.
I N D U S T R I A L N E W S
September Rate-Cut Odds Rise After Inflation Data
Barron’s – August 12, 2025
Read MoreThe 30-Year Bond Auction Went Poorly.
Yields Are Popping Higher
Barron’s – August 8, 2025
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Industrial Transactions Slow As Sale
Prices Slip From Record Highs
GlobeSt.com – July 31, 2025
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Central Banks Buy 166t Gold As BRICS
Pushes De-Dollarization Forward
Watcher.Guru – August 15, 2025
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Global Trade Is Booming-Just Without America
Yahoo! Finance – August 13, 2025
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R E G I O N A L N E W S
Amazon To Build 933K-SF Terrell Distribution Hub
Connect CRE – July 30, 2025
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Marcus & Millichap: Chicago Ranks As The Third
Strongest Industrial Market In The Country
REjournals – August 19, 2025
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Stonemont Acquires 224,060 SF Industrial
Service Facility In Southwest Dallas
REBusiness – August 21, 2025
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iDC Logistics Leases 1.1M SF
Of Industrial Space In Southern Cal
GlobeSt.com – August 5, 2025
Read More
Report: Chicago Industrial
Market Sees Uptick In Leasing
Connect CRE – August 4, 2025
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