Latest News

  • Market Watch

    Jul 7 2021

    3rd Quarter 2021 Market Watch by Joe A. Hollingsworth, Jr. I am one that thinks that the stock market is priced to “virtual perfection”.  So, if everything works out as envisioned by investors, the stock market is “likely” to stay close to where it is for a year or so.  But, a big part of me can see that we are setting the economy up for an obvious slowdown in stimulus that could create a 6,000 to 8,000 points decline in the DOW.  So, what if that happens? How is it going to affect industrial real estate, contractors, subcontractors, etc.? We believe that the underlying economy is amazingly strong; and generally, the fundamentals are in good shape (minus labor).  Therefore, we have taken the investment stance that the demand for new space will continue at nearly the same rate through the end of the year.  However, if the stock market selloff occurs, does it damage the underlying fundamentals? The answer is a resounding “No”.  However, great damage can be done by the new administration to those fundamentals.  Strains the new administration are causing or proposing are:  1) starving us for labor so they can finally get the $15.00 per hour by bidding up scarce labor prices; 2) executive actions that the court system has roughly already overturned 1/6 of all the actions and another six are in process of being overturned with another 1/6 of them being attacked by various groups; 3) giveaways – encouraging the Russia pipeline completion (Nord Stream 2) and starving out Keystone (our pipeline); 4) give Iran nuclear weapons over a period of time; 5) “act” like you are being tough on the biggest American threat (which is China); 6) a borderless nation and resulting in massive illegal immigration; 7) real estate 1031s elimination; 8) doubling the long-term capital gain tax rate; and, 9) ignoring obvious inflation that is ridiculous when compared to two years ago (take out the COVID year).  All of the above factors and more can add up and greatly affect the economics of many potential expansions or new locations industrial in real estate.  As difficult as the above factors are, they are not likely to “kill” the golden goose. While the immediate future for our industry is strong, the many potential speed bumps are seemingly getting more numerous.  Business hates variables.  However, in spite of so many factors being present, the amount of investment capital has to go somewhere, and too much of it is sitting on the sidelines.  This coupled with the fact that the federal reserve seemingly thinks that the continuous stimulus of some form will keep recessions (the natural selection of good companies over bad) from occurring.  In fact, as unpopular as it is, recessions always make a stronger economy comeback and reteach us the lessons of healthy capitalism. I know today’s industrial real estate gets a gold star; but, a year from now, we will be very happy to settle with a silver star and a stable economy.

  • Press Releases

    Feb 18 2021

    Prince George industrial park plans huge spec warehouse expansion February 18, 2021 The Richmond market’s industrial real estate sector continues its strong start in 2021, with a complex in the region’s southern half set to expand by nearly 50 percent. Tennessee-based The Hollingsworth Cos. is preparing to begin work on a 650,000-square-foot industrial building in the Southpoint Business Park in Prince George. Located at 6162 Quality Drive, the park currently houses about 950,000 square feet of industrial space across 11 buildings on its 152 acres. Hollingsworth began developing the park 15 years ago, adding to a portfolio of 18 million square feet of industrial space, located mostly in the Southeast. Tom Mann, a VP at Hollingsworth, said the new building will be built on spec, an approach he said has been fruitful for the company recently. “A lot of our customers will see rapid growth, and we get a call right away because we have a building that’s almost ready,” Mann said. “When COVID hit we thought it’d grind to a halt. It ended up being the opposite. Retail declined but industrial picked that back up because people were ordering from home. 2020 was great for us because we had spec buildings out there.” Read More “Prince George industrial park plans huge spec warehouse expansion” ###


In The Southern Advantage, site selection expert, Joe Hollingsworth, tells you how to find the best location in America for your business! Click below to get your free copy today.