The Rate Cuts Have Arrived

TRANSACTIONS
Acquisitions and Dispositions

ACQUISITION: Alterra completed its acquisition of 4 sites in Houston, totaling over 17 acres. The largest site was 57,500 square feet at 5100 Underwood Road — this is a sale leaseback to an existing industrial chemical cleaning company (score)!
Some things take a village, and Lee & Associates’ Houston facilitated the acquisition of 8121 and 8223 Parkside Avenue and will also lease the sites. Zane Carman of Partners Real Estate facilitated the acquisition of 9002 Wayfarer Lane, and the Partners team will handle leasing.

ACQUISITION: Zenith acquires 194,000-square-foot truck terminal on 17 paved acres at 2222 North Wayside Drive in Northeast Houston, marking one of the largest IOS deals in Houston's history. Everything is bigger in Texas!
Lee & Associates brokers C.E. “Trey” Erwin III and Josh Carl made this deal happen.

ACQUISITION: Outpost expands adding more than 1,700 semi truck parking spaces across 4 new yards in the Inland Empire, Chicago, Laredo, and Fort Lauderdale. This is part of their efforts to deploy $500 million to expand its network of outside storage sites. Yard Dogs on the hunt!

DEVELOPMENT: Miramar purchased an IOS development site in Torrance, CA. The 3.94 acre site is one of the initial acquisitions of its IOS partnership with UBS Asset Management. The 3.94 acre development site will be redeveloped and is planned to feature a 30,000 SF industrial building with 2 acres of yard. Rob Flores with CBRE will be leasing the site.

LEASING 
Leases Signed

Zenith IOS signed a build-to-suit lease with Insurance Auto Auctions (IAA) for 18 acres at the Sunshine Industrial Park, which includes over 50 acres of IOS space. JLL’s John Dunphy, Charlie Kenning, and Grant Glattly represented IAA. Franklin Street’s Brad Hutton, David Hovis, and Pat Kelly represented Zenith IOS.

MARKET INFO
Ticker

In the News

Walmart has set their sights on boosting US manufacturing jobs. Walmart has joined a mix of companies that are focused on increasing manufacturing jobs in the US as part of an ongoing “onshoring” trend that has taken place post-COVID. Walmart is looking to partner with companies producing American made products and work to bring them to the masses at great prices. Below is one example of their partnership with American Giant:

IOS DIVE
Market Outlook

IOS is a $200 Billion market that is positioned well to continue to grow with the sales mix shift to e-commerce (currently ~16% of total retail sales) and as Companies re-shore manufacturing operations. E-comm sales expected to be 20%+ by 2027, requiring more IOS to facilitate logistics and product distribution.

While most IOS will benefit from these tailwinds, cities with pre-existing transportation infrastructure and experiencing growth will benefit more quickly. Texas and southern states continue to see rapid population growth - one of many reasons why we see increased IOS investment in these states.

RECS
Worth a Look

• Article: The Busiest Port on the East Coast Comes to a Stop by The New York Times — The strike by longshoremen has arrived and is effecting the supply chain. If a strike is resolved quickly, experts project minimal economic damage, but if the strike drags on there is a greater potential for shortages around the holiday season and price hikes.

• Podcast: The Fight Over US Steel and The Community Caught in the Middle by The Journal — Both presidential candidates have signaled opposition to the planned sale of US Steel to Japan’s Nippon Steel, but the workers at US Steel in Pittsburg might feel differently about the deal.

Referral Program
Coming soon, which will include swag and digital resources that will elevate your IOS game.
Subscribe so you don’t miss out!