Just when everyone thought the market was turning around, along comes the most recent unemployment rate in CT. 9%! Ouch! Yes, that is .9% WORSE than the national rate of 8.1%.
So, do you still think we are headed back? Well, if you look at the number of transactions in the last 60 days and the volume of activity in the same period, it would appear that the industrial re markets certainly look like they are taking a turn for the better. Not only the medium and small markets, but the big deal market too (Advance Auto/Enfield, Subway/Milford, WinWholesale/Middletown, Dollar Tree/Windsor)! Showing and contract activity has increased in the last few weeks as well, leading one to believe that the brokerage firms should have a healthy Q3 and Q4. That said enthusiasm is tempered by recent plant closings. We lost 6,800 jobs in CT this past month alone! These include just two in the last week…Finlay/Bloomfield, Unilever/Clinton. So while the increased market activity is great for transactional volume, it might not help in the appreciation side of the business.
At some point we need to stop the “win one, lose one” cycle. Thought that had stopped last year but looks like we are at risk of being on the cusp of another cycle of it.