Market Watch

Current Perspectives

2nd Quarter 2020

Market Watch by Joe A. Hollingsworth, Jr.

Our articles are written to better guide industrial real estate developers, investors, and professionals; but, there is never a point when investing decisions are not affected by outside events. Those events range from regulations, taxation, right to work laws, GDP growth, etc.; and, occasionally, there is a “tsunami”.

A few thoughts on our virus/tsunamis: • The virus has proven the fallacy of globalism and elitism, and believing that all countries have mankind’s best interest at heart. “Blind Globalism” has forever been blown apart with some countries openly lying to great harm and hoarding supplies of “single source material”. • Companies in America must reassess their “global supply chains”, because the complications of different governmental interactions halting a crucial part is immense, especially if it is sole source. • American companies’ products that are produced overseas for marginal savings have begun the evaluation of coming home to produce, thus accelerating of America’s manufacturing resurgence. • America’s realization that being without rare-earth metals (which are totally controlled by China) will bring Silicon Valley and the building of computers and electronics to a halt, which must immediately change. • Oil is no longer the ultimate economic weapon; it is food. America is blessed with agricultural capacity. • This “tsunami” is accelerating the demise of the $40K annual tuition to universities. Why not just study from home and not mortgage the house or have student loan debt? • The realization that not grouping college students on campus together will allow them to think more freely and have less liberal “group think”. By staying at home, they interact with their local community population instead of liberal university professors and radical “on campus groups”. • This problem forces us to recognize, as a community, how our economy is dependent on all our interactions with good consistent policies and regulations that apply wisdom with the small price you must pay for preparing for devastating events, thus promoting nationalism. • How important it is for the “hysteria-driven” media to use just facts to help educate the population? • The words “fake news” have become more real as inaccuracies in news, by intention or lack of research, constantly are proven wrong. • Downtown office towers are at risk, because people have learned to work at home. • Recognition by 2/3 of Americans that some of the big city/urban problems are unsolvable.

The above list goes on and on. The seismic effects will be felt for years. It will be uncomfortable and a little frightening. As to industrial real estate, while some developers are putting new projects on hold, we believe that by the time a facility is finished there will be a scarcity – build baby build!

Comments:  jah@hollingsworthcos.com

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