A new report from Savills on the US industrial market for the second quarter of 2022 says that demand is still strong, but that has a lot to do with the market and some quirks about the general economic environment. It's another puzzle piece that fits in with observations from other sources.

As Savills notes, there are major macroeconomic concerns. The country may be headed into a recession. GDP growth is down, and inflation is high, with a tight labor market and ongoing supply chain issues contributing. The Federal Reserve has been boosting its benchmark interest rate and that, as it was supposed to, has pushed up other interest rates as a result. Higher interest means a foot on the economic brake pedal from more expensive financing.

Commercial real estate has already felt the impact and likely will even more if the Fed, as expected, adds another 75 basis points to its rates on Wednesday.