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- Another Solid Month for Consumers
Another Solid Month for Consumers
Consumer Spending Up In September, Bolstering Economic Growth
U.S. Consumer Spending Outpaces Expectations, Up 1.7% from September 2023
YardDogs -
Welcome back. Here’s the business and IOS news you need.
In today’s email:
Big Ticket: U.S. retail sales up in September, growing 0.4% over prior month and 1.7% from September 2023. Consumer spending and overall economy shows resiliency, likely means a 25bps rate cut at next Fed meeting (vs. a 50bps cut).
Transactions: Alterra purchased a 5.4 AC site in northwest Charlotte, NC; Panther Capital Group closed a 3.61 AC site with 7,500 SF of industrial building in Tampa, FL; K2 Real Estate Capital along with Bear Development Holdings closed a 1.3 AC IOS site featuring two buildings totaling 13,000 SF in Orlando, FL..
Market Outlook: CRE professionals express optimism to close out 2024 and in 2025 outlook.
Worth a Look: Amazon leading the AI charge and a whitepaper on the state of freight and Q4 outlook.
THE BIG TICKET: The U.S. Commerce Department reported better than expected retail sales for September. Although the U.S. economy continues to display resilience, expect another 25bps rate cut at the next Fed Meeting (after the U.S. Presidential election in November - on the edge of our seat!!)
Gasoline prices dropped about 12 cents per gallon from August to September, further increasing customers purchasing power. Consumer spending has continued positive momentum since May, with September representing the strongest percentage growth since June ‘24.
Source: Reuters
What this means for IOS: As demand for goods is high, expect increasing IOS site demand as companies seek to fulfill customer demands with maximum flexibility at the final miles before delivery.
TRANSACTIONS
Acquisitions and Dispositions
ACQUISITION: Alterra purchased a 5.4 AC site in northwest Charlotte, NC. The site is leased by The Loving Group, a landscaping solutions company. Gregory Gosselin and Justin L. Smith, SIOR at Colliers International alongside Alek Salfia and John Christenbury at CBRE got this one across the finish line.
ACQUISITION: Panther Capital Group closed a 3.61 AC site with 7,500 SF of industrial building in Tampa, FL. Hector Delgado on the Panther team led this transaction.
LEASING
Leases Signed
LEASE: Rock Materials, a division of SRS Distribution, leased 3.0 AC with 11,700-square-foot of building in Austin, Texas. Reed Vestal, SIOR, CCIM, John Erck, CCIM and Quade Towers of Junction Commercial Real Estate with help from Sarah Pickup of JLL represented SRS Distribution. The landlord was represented by Mike Soheili and Sheida Soheili.
LEASE: Timber Hill has focused on developing industrial outdoor storage in Jacksonville, and they leased 21.3 AC to Norfolk Southern less than a mile away from the Norfolk Southern rail yard. What a location and what a site!
MARKET OUTLOOK
2025 Outlook
Source: Deloitte
Results from Deloitte’s 2025 commercial real estate outlook survey give some indication that commercial real estate owners and investors are hopeful that 2025 will emerge as a year of potential recovery over two years of muted revenues and pullbacks in spending.
The survey collected input from more than 880 global chief executives and their direct reports at major real estate owner and investor organizations across 13 countries.
After two consecutive years where most survey respondents expected revenue declines, 88% of global respondents now report they expect their company’s revenues to increase going forward, a substantial shift from the 60% who expected further declines last year.
The largest risks mentioned for 2025 are i) elevated interest rates, ii) cyber risk and iii) potential change in tax policies (election season!!!)
Source: Deloitte
RECS
Worth a Look
Article: Amazon is Deploying AI Tech in Delivery Vans by Supply Chain Dive - New vision-assisted package retrieval aims to save time on routes by helping cut down the time it takes for drivers to find packages.
White Paper: The State of Freight September 2024 by Freight Waves - September’s session includes an overview of current freight market conditions and macroeconomic trends, and highlights what you should pay attention to regarding freight heading into Q4.
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Disclaimer: The authors of IOS YardDogs are not finance or tax experts. We love big yards, small buildings. This email is for educational uses and is not financial / investment advice. Please conduct independent research and consult with industry professionals before making financial or investment decisions. Our content, which may contain affiliate links, is subjective and not to be used as the only basis for such decisions. We are not responsible for any losses from relying on this information.