- Amazon Is Refining Delivery Operations as It Resets Logistics Network “Amazon.com Inc. appears to be fine-tuning its distribution strategy as it pauses its warehouse expansion across the U.S., consolidating operations in some areas while pulling back growth plans in secondary markets, according to logistics experts. The e-commerce giant has canceled, closed and delayed facilities at each stage of its order fulfillment process, while continuing to move forward with large distribution centers that funnel goods into its home-delivery network since it announced earlier this year that it was pausing its ambitious U.S. logistics expansion.” (The Wall Street Journal)
- Fed Third Jumbo Rate Hike Brings CRE Further into New Normal “The Federal Reserve maintained its hawkish strategy to combat inflation Wednesday with a third 75 basis point (bp) hike on the central’s bank’s benchmark interest rate since June — a move that continues the commercial real estate industry’s path toward a new financing reality. The Fed’s three-quarters of a percentage point hike places the benchmark federal funds rate at a range between 3 percent to 3.25 percent, a stark contrast from its 0.25 percent to 0.50 percent target that was in play as recently as early May.” (Commercial Observer)
- A Peek Inside the Trump Real Estate in Tish James’ Bombshell Lawsuit “Triple-counting the square footage of a Manhattan penthouse. Claiming his name alone added 30 percent to the value of a Florida golf club. Valuing a property based on homes that could not be developed. These are among the tricks former President Donald Trump allegedly used to inflate the value of his real estate holdings and obtain hundreds millions of dollars in financial benefits over more than a decade, according to a suit from New York Attorney General Tish James on Wednesday.” (Politico)
- New York City Apartment Rent Growth Peters Out in August “After months of record-breaking growth, New York City rents have finally flatlined. In August, the median rent in Manhattan slipped 1.2 percent from July to $4,100 and the median rent with concessions dropped 1 percent in the same period to $4,059, according to a report by appraisal firm Miller Samuel for Douglas Elliman. The dips mark the first time since February that Manhattan rents have not broken records, said report author Jonathan Miller, a sign that the market has plateaued.” (The Real Deal)
- How Interest Rate Hike Impacts Multifamily “As widely anticipated, the Federal Reserve on Wednesday afternoon again lifted the federal funds target by 75 basis points. The announcement of the rate hike is intended to both trim demand and reduce inflation over the coming months. Reaction to the announcement from observers across the multifamily industry was swift. ‘This week’s rate increase was expected, especially after the CPI report earlier in the month,’ Dave Borsos, vice president for capital markets at the National Multifamily Housing Council, told Multi-Housing News.” (Multi-Housing News)
- Aging U.S. Warehouses Are Driving Record Development “Demand for new, modern warehouse construction is high. It has to be: CBRE reports that the average warehouse age is 43, so developers are building new facilities at record levels as the world manages the supply chain. Construction activity in 2022, as of the end of the second quarter, totaled a record 627 million sq. ft. CBRE’s report points out that one-quarter of existing warehouse space “is aged more than 50 years and most of that product tends to have a smaller footprint and lack the features, design and amenities required by modern distributors.” (GlobeSt.com)
- Showing That You Are Working Is Not the Same as Working “In a new study by Microsoft, nearly 90 percent of office workers reported being productive at work, and objective measures — increased hours worked, meetings taken, and amount and quality of work completed — prove them out. Meanwhile, 85 percent of bosses say hybrid work makes it hard to be confident that employees are being productive.That uncertainty, coupled with a looming recession and many companies moving back to more time in the office, is prompting workers to increasingly show that they’re working — which is decidedly not the same as actually working. Rather, it’s what some have called ‘productivity theater.’” (Vox)
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