Top 10 list of cities where sellers are slashing prices

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The chances of a US recession are now just 15%, Goldman Sachs says link

• Goldman Sachs reports only a 15% likelihood of a US recession in the upcoming year, a decrease from the previous 20% estimate.

• The Federal Reserve is nearing the end of its inflation combat strategy, with Chief Economist Jan Hatzius expressing increased confidence that interest rate hikes have concluded.

• Recent economic indicators, such as a 3.2% rise in the US Consumer Price Index in July and a slight increase in unemployment from 3.5% to 3.8%, suggest that further interest rate hikes by the Fed might be unnecessary.

Apartment List National Rent Report link

• Annual rent growth is now at -1.2%, indicating that apartments are on average 1.2% cheaper than they were a year ago. This is a significant shift from previous years where growth reached up to 18% nationally.

• Monthly rent growth has also turned negative, with the national rent index decreasing by 0.1% in August. This change occurred one month earlier than the previous year.

• The vacancy index has been on the rise for 22 consecutive months, currently standing at 6.4%, which is slightly above the pre-pandemic average. With a record number of apartments under construction, vacancies are expected to remain high in the upcoming months.

Here Are The Latest Industrial Hotspots link

• Inland Empire, Miami, and the NJ corridor have been the dominant markets for the industrial sector, but secondary and tertiary markets are now gaining traction due to various factors.

• Costs, capacity, and production patterns are driving new activities in previously overlooked markets.

• The latest industrial hotspots include:

  • Savannah

  • Las Vegas

  • Phoenix

  • El Paso

$205B of Dry Powder Ready to Pounce on Distressed CRE Assets link

• Real estate investors are poised with significant funds but might need to wait 6-12 months for the most favorable valuations on distressed CRE assets.

• Data firm Preqin identifies over $205B set aside for CRE investments in the US.

• CRE prices are on a downward trend; they've decreased by an average of 16% since their high in March 2022, based on Green Street data.

Three Trends Impacting the Food and Beverage Cold Chain Industry link

• The food and beverage sector saw a significant surge in online sales growth, with gains more than doubling to 75% in 2020 from 32% in 2019. Experts project that by 2027, food and beverage sales will make up over 21% of total e-commerce revenue in the U.S.

• Automation is revolutionizing the food industry. Robotics streamline repetitive tasks like packing and sorting, enhancing product presentation and reducing costs. Automated systems in cold storage optimize inventory management, improve temperature control, and minimize manual handling, ensuring the quality of perishable items.

• Sustainability is a major focus, with companies transitioning to electric vehicle (EV) fleets. Charging EVs can be up to 75% cheaper than fueling traditional vehicles. Major companies like Amazon, Walmart, and FedEx are incorporating electric vans for last-mile deliveries, highlighting the financial and environmental benefits.

The Rise Of Alternative Assets In The Industrial Sector link

• Warehouses, logistics, and fulfillment centers remain the backbone of the industrial asset class, but emerging subcategories are bolstering the sector's growth.

• Industrial outdoor storage (IOS), which includes storage for vehicles, construction equipment, and building materials, is currently one of the most sought-after commodities in commercial real estate.

• A Green Street report emphasized the near-zero new supply of IOS sites near logistics nodes, highlighting strong demand and rent growth for well-located IOS, predicting sustained robustness over time.

Top 10 list of cities where sellers are slashing prices: link

• Huntsville, AL: Median home list price in July: $407,000. Increase in price reductions year over year: 69.6%.

• Lafayette, LA: Median home list price in July: $265,000. Increase in price reductions year over year: 69.2%.

• McAllen, TX: Median home list price in July: $289,000. Increase in price reductions year over year: 50%.

• Jackson, MS: Median home list price in July: $284,000. Increase in price reductions year over year: 46.2%.

• Augusta, GA: Median home list price in July: $310,000. Increase in price reductions year over year: 41.4%.

• Memphis, TN: Median home list price in July: $325,000. Increase in price reductions year over year: 22.5%.

• Fort Collins, CO: Median home list price in July: $640,000. Increase in price reductions year over year: 18.9%.

• Cape Coral, FL: Median home list price in July: $480,000. Increase in price reductions year over year: 15.8%.

• Greenville, SC: Median home list price in July: $356,500. Increase in price reductions year over year: 15.1%.

• Fort Wayne, IN: Median home list price in July: $350,000. Increase in price reductions year over year: 13.8%.

Electric Vehicle Trends and Challenges for Industrial Real Estate link

• The global EV market is projected to grow at a CAGR of 29% from 2020 to 2027, reaching 31.1 million units by 2027.

• Industrial real estate will face challenges in accommodating EV growth, especially in densely populated areas where space is limited.

• The need for charging infrastructure will drive demand for larger industrial facilities, potentially leading to a shift in location preferences.