IAMC News Briefs—Week of August 7, 2023
By John Salustri
COMMERCIAL OBSERVER—Preylock Real Estate holdings is looking at a $1.1-billion loan refinance. The commercial mortgage-backed securities (CMBS) refi is for a portfolio of Amazon warehouses in 10 states. There are 12 assets in the pack totaling 8.9 million square feet. They are all fully leased to the mega e-tailer for terms of about 14 years. This story was originally reported in the Real Deal.
https://commercialobserver.com/2023/08/amazon-warehouse-refi-preylock/?utm_source=sailthru&utm_medium=email&utm_campaign=dailyru&utm_term=
COMMERCIAL PROPERTY EXECUTIVE—The Matrix Logistics Center in Newburgh, NY has a new—and massive—tenant. Tesla has inked a deal for 927,000 square feet there to use as an auto parts distribution center. Reportedly, Tesla chose the site, some 70 miles north of Manhattan, in large part for its proximity to New England and the Mid-Atlantic corridor. Matrix Development Group secured approvals last year to build two spec buildings on the site. Tesla is taking the larger of the two. The second asset paces out to 215,000 square feet.
https://www.commercialsearch.com/news/tesla-leases-927-ksf-building-in-upstate-new-york/
SUPPLY CHAIN DIVE—Staples is now partnering with DoorDash to deliver goods same-day—often within the hour. Approximately 1000 Staples location are currently offering the service. To grease the skids for potential customers of the service, the office-supplies giant offered a limited-time $20 discount on orders topping $40. The initiative is timed strategically to coincide with the back-school market.
https://www.supplychaindive.com/news/staples-doordash-partner-same-day-delivery/690298/?utm_source=Sailthru&utm_medium=email&utm_campaign=Issue:%202023-08-09%20Supply%20Chain%20Dive%20%5Bissue:53386%5D&utm_term=Supply%20Chain%20Dive
IAMC CORNERSTONE—“Sluggish.” That’s how JLL describes Q2 industrial performance in a quarter marked by “rising inflation and economic uncertainty.” While asking rates climbed year over year--in fact, by 18.4% to $9.48 per square foot—absorption “tumbled” 41.3% with only 61.9% taken up. In addition, as “record” amounts of new product come on line and pre-leasing continues to lag, vacancies “continued to inch up to 4.2%.”
https://www.iamc.org/Sign-In?returnurl=https%3a%2f%2fcornerstone.iamc.org%2fhome
COMMERCIAL PROPERTY EXECUTIVE—While industrial leasing lags, a surge in construction spending is creating a boom in US advanced manufacturing. According to CommercialEdge, the annualized monthly rate for new facilities doubled in May to “a record-breaking $194 billion,” doubling in two years. Leading the charge—not surprisingly--is the computer/electronics sector, with mega deals by the likes of Samsung, Intel and Taiwan Semiconductor. Hyundai and Panasonic were among the leaders behind the explosive growth of EV battery facilities. Major legislation, such as the CHIPS and Science Act, are helping to fuel the growth.
https://www.commercialsearch.com/news/manufacturing-thrives-amid-construction-surges/?utm_source=WhatCountsEmail&utm_medium=CPE%20Daily&utm_campaign=NEW%20CPE%20Daily
NATIONAL ASSOCIATION OF MANUFACTURERS—While the US is indeed in the midst of a manufacturing boom, regulations from inside the Beltway provide only “confusing guidance or no guidance.” Those were the words of NAM president and CEO Jay Timmons in a Squawk Box interview. While he acknowledged the congressional push for more US-based manufacturing, lawmakers are also burdening that incentive with 1) the number of regulations; 2) slow permitting, “making it difficult for manufacturers to build those facilities they’re willing to invest in”; and 3) “confusing guidance or no guidance when it comes to accessing the funds and credits that are available for manufacturing.” Together these three issues are stacking the deck against US manufacturers trying to “compete and succeed in our global economy.”
https://www.nam.org/timmons-on-regulations-make-them-sensible-and-achievable-28155/?stream=news-insights