Forward Curves Suggest Higher Rates for Longer
Earlier this year, the market began pricing-in expectations of gradually declining interest rates by year’s end. However, “sticky” inflation and a resilient consumer economy driven in part by low unemployment have altered that expectation in the second half of 2023. It has become increasingly clear that, barring any recessionary catalysts, we are almost certainly in a “higher for longer” environment, with no rate cuts on the immediate horizon. By the Fed’s own admission, further rate hikes are not off the table. A higher for longer environment will further increase pressure on property values, magnifying the importance of well located, highly functional assets.
Aside from persistently high rates, plenty of other trends warrant a closer look as the logistics market continues to evolve. This includes the rise of so-called “alternative” industrial asset classes including cold storage and industrial outdoor storage. While these maturing asset classes continue to show promise, they face unique headwinds that must be approached with caution. Nonetheless, they have become significant influences on tenant demand and capital allocation, thus demanding close monitoring. These asset types experience more volatility, with shallower tenant pools sensitive to economic conditions, which can result in wider rent spreads and lower capital markets liquidity. A more measured investment strategy is practical when considering these niche industrial assets.
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Upcoming Events
OPEN HOUSE: 355 Crooked Hill Road, Brentwood, NY 11717
BLP is hosting an open house for our property at 355 Crooked Hill Road in Brentwood, NY on Wednesday, October 18, 2023. The 80,000 SF, rear-load warehouse situated on an oversized parcel approximately 1 mile from the 495 interchange in Brentwood in Suffolk County, providing excellent connectivity to all of Long Island. The property is available for immediate lease.
Total Available: 80,000 SF
Leasing News
299 Beltway Green Boulevard, Houston, TX 77503
BLP is excited to announce the execution of a 64,745 sf lease with nVent Thermal at 299 Beltway Green Boulevard, a 130,023 sf Class A front-load warehouse in the Southeast submarket of Houston. This lease brings the property, which BLP acquired less than 12 months ago, to 100% leased. Thank you to Gray Gilbert, Jack Gilbert, and Abby Fraher of Partners Real Estate for their assistance in executing this lease.
Featured Availabilities
804 W. Shady Grove Road, Grand Prairie, TX 75050
Total Available: 203,430 SF
366 East D Street, Wilmington, CA 90744
Total Available: 38,038 SF of Land
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Bridge Logistics Properties, 1501 Quail Street, Suite 110, Newport Beach, CA 92660, United States