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Rya Hazelwood
/ Categories: Industry News

IAMC News Briefs—Week of May 22, 2023

By John Salustri

Bank Failures Raise Recession Risk—But Not by Much

CUSHMAN & WAKEFIELD—Since 1934, there have been only five years in which a bank has not failed. So says Cushman & Wakefield in “Bank Failures Explained.” Specifically, those years were 2005, 2006, 2018, 2021 and 2022. They don’t make news because of the processes in place for stress resolution put in place by the FDIC and regulators. The difference here is that this year’s issues were technically not failures but bank runs—with mass withdrawals due to lost confidence in the lending institution. The important issue here is the runs’ impact on a recession. That risk was already high, says Cushman, and lending was already tightening. Looking at Treasury data, the firm says the risk of recession has jumped from 67% to 80% since the bank crisis. It changes the outlook not at all—that “a modest recession [will] occur in 2023.” But here, it hedges its bet, emphasizing cryptically “that risks have skewed further to the downside given recent events.”
https://cushwake.cld.bz/Bank-Failures-Explained

 

Prologis Sees Rents Escalating, Despite Economic Woes

GLOBEST.COM—The nation’s problems with lending institutions aside, Prologis is predicting a 10% increase in industrial rents for the year. What’s more, its latest Industrial Business Indicator has a score of 56.2, what the website calls “an expansionary mode.” But, not surprisingly, how expansive might be dictated by the economy, and the REIT states that “Macroeconomic crosscurrents may lead to some delayed decision-making, which could push demand from 2023 into 2024.” Nevertheless, the outlook isn’t grim for occupancy rates: The U.S. vacancy rate should drift up to the low- to mid-4% range by year-end, well below the historic average.”
https://www.globest.com/2023/05/23/prologis-anticipates-industrial-rents-will-increase-10-this-year/

 

Closing the ESG Gap

IAMC CORNERSTONE—Quoting data from the World Economic Forum, Hickey and Associates, in its newly released “Executing Corporate ESG Goals,” reports that more than 90% of the companies in the S&P 500 Index have published a sustainability report. But this is only a 20% increase since 2011. Despite that slight 12-year rise, “developing and deploying a strategic facility ESG (Environmental, Social and Governance) scorecard and real estate portfolio checklist is critical,” says the firm. The report details the factors that comprise each element of ESG, and it explores such critical steps as data collection and indexing, the involvement of economic development organizations and the evaluation of financial assistance programs.
https://cornerstone.iamc.org/viewdocument/hickey-executing-corporate-esg-go

 

Rockefeller Group Buys Vegas Acreage for Spec

RENTV.COM—You could say speculation is the name of the game in Las Vegas. Rockefeller Group is rolling the dice on seven acres in North Las Vegas on which it envisions two spec industrial assets. The previous owner, R.A. Plaza LLC, gave up the land for $8.5 million. Construction of Cheyenne Industrial Park, pacing out to more than 145,000 square feet, will commence in Q4, making it the second Rockefeller Group project currently in the works there. JLL represented Rockefeller and will handle leasing. Kimley Horn is the civil engineer.
http://www.rentv.com/content/homepage/mainnews/news/30640


Nearshoring Gets Logistical Boost in Double Doses

SUPPLY CHAIN DIVE—Redwood Logistics and BlueGrace Logistics are both taking a bigger bite out of the Mexican market, in advance of an expected nearshoring surge. BlueGrace is setting up a dedicated Mexico office, offering customer brokerage, dry van and temperature-controlled trucks, as well as docking and warehousing services. Chicago-based Redwood is also reportedly expanding its service offerings.
https://www.supplychaindive.com/news/Redwood-and-Bluegrace-logistics-expand-operations-in-Mexico-nearshoring-strategy/648614/?utm_source=Sailthru&utm_medium=email&utm_campaign=Issue:%202023-05-18%20Supply%20Chain%20Dive%20%5Bissue:50596%5D&utm_term=Supply%20Chain%20Dive

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