IAMC News Briefs—Week of May 30, 2022
WEALTH MANAGEMENT REAL ESTATE/BLOOMBERG—One argument is that a cooling economy will allow supply chains to rebalance. Already, “The line of 25 cargo ships headed to Southern California’s two big ports is less than a quarter of the record backup in January.” But the wait on rail movement of goods still remains high, and as we anticipate China signaling its factories to run full steam again, “links between factories and consumers will get stretched again.”
https://www.wealthmanagement.com/industrial/supply-chain-relief-sparks-feud-over-degree-softer-us-economy
GLOBEST.COM/AUSTIN BUSINESS JOURNAL—A 193-acre fulfillment center Amazon planned for Austin, TX has been sidelined “indefinitely.” In a statement, Amazon cited a Q1 loss of nearly $4 billion, which it pinned to an overestimate of the growth of e-commerce. At the close of 2021, the mega-etailer employed more than 11,000 workers in the Austin metro area.
https://www.globest.com/2022/06/01/amazon-shelves-plans-to-build-austin-area-fulfillment-center/
COMMERCIAL OBSERVOR—Leste Real Estate and Iconic Equities have shaken hands on a joint venture targeting smaller logistics sites in 25 markets around the country. The new JV has a war chest of $400 million. That capital will be deployed in bites of $5 million to $30 million, and disbursement has already begun, with contracts set in both Inland Empire, CA and Coral Gables, FL. The emphasis will be primarily on sites designed for vehicle storage. Other smaller metros targeted by the JV include Savannah, GA and Charleston, SC.
https://commercialobserver.com/2022/06/jv-with-400-million-plans-to-raid-overlooked-section-of-industrial-market/?utm_campaign=daily-roundup&utm_content=2022-02-06-27910467&utm_source=Sailthru&utm_medium=email&utm_term=CO%20Daily%20Newsletter
INSTITUTE FOR SUPPLY MANAGEMENT—The Institute for Supply Management’s newly released Semiannual Economic Forecast bodes well for the manufacturing sector, with a 9.2 percent anticipated jump in revenues this year. In the report, 16 of 18 surveyed sectors look to those positive revenue numbers. They are: Apparel, Leather & Allied Products; Petroleum & Coal; Fabricated Metal; Transportation Equipment; Nonmetallic Mineral Products; Furniture & Related Products; Chemicals; Food, Beverage & Tobacco; Computers & Electronics; Miscellaneous Manufacturing; Machinery; Primary Metals; Wood Products; Electrical Equipment, Appliances & Components; and Plastics, Rubber and Paper Products.
https://www.ismworld.org/supply-management-news-and-reports/ism-world-2022-no-recession-red-lights-in-semiannual-forecast/
BISNOW—Given the numbers, it’s little wonder that new players are entering the industrial space. Greystar, known for its multifamily portfolio, entered the lucrative space in March, with a $43.7 million play for 154 acres near the Phenix airport. Ditto private equity giant KKR & Co., unveiling plans to develop a total of 1.8 million square feet of mid-sized warehouses in Atlanta, Dallas, Denver and Orlando. And office icon Tishman Speyer has thrown its hat into the ring with its hire of Andy Burke, who comes from industrial developer Terreno Realty, to oversee the growth of its own middle-mile distribution strategy.
https://www.bisnow.com/national/news/industrial/industrial-revolution-ongoing-boom-draws-out-latest-crop-of-newcomers-113195