- Relief Eludes Many Renters as Fed Raises Interest Rates “While it is tough to predict how big or how lasting that Fed-induced bump in rental demand might prove, it could ironically make it more difficult for the central bank to wrestle inflation lower in the near term. Rent-related costs make up nearly a third of the closely tracked Consumer Price Index inflation measure, so anything that helps to keep them climbing at an unusually brisk pace is likely to perpetuate rapid inflation.” (The New York Times)
- Housing Could Provide More Fuel for Inflation “Climbing housing costs are set to keep inflation elevated this year, creating another challenge for Federal Reserve officials who want to see signs that price pressures are easing before slowing their interest-rate increases. Overall annual inflation rose to 8.6% in May, while core inflation, which excludes volatile food and energy costs, hit 6%, according to the Labor Department’s consumer-price index. The June figures are set to be released Wednesday.” (The Wall Street Journal)
- Silicon Valley Bets on New Transport to Counter the Rise of Remote Work “Real-estate developers are ramping up new office projects in Silicon Valley, confident that big technology companies will expand their workplaces and capitalize on the area’s new transportation and housing initiatives. In San Jose, Calif., alone, three developers have office projects under way even though they have signed few or no leases in advance. Alphabet Inc.’s Google is planning a new 80-acre mixed-use development, where work will begin on infrastructure for the project by next year, according to city officials. Meta Platforms Inc.’s Facebook and Apple Inc. are also expanding their Silicon Valley space, according to real-estate brokers.” (The Wall Street Journal)
- Inside the Recent Pause in Industrial Sales “Gregg Healy, EVP and head of industrial for North America at Savills, has no worries about the industrial asset class’ long-term prospects. Reshoring, for example, is causing more companies to invest in the US with a diversified portfolio of manufacturing. “It will increase the demand for industrial sites and that, along with companies’ desire to maintain more inventory as well as the continuous growth of e-commerce will all serve the long term,” he tells GlobeSt.com.” (GlobeSt.com)
- Dollar General CEO to Retire; Successor Named “The chief executive of Dollar General Corp. is retiring and will be replaced by a longtime company executive. The discounter said that Todd Vasos will step down as CEO, effective November 1, 2022. He will be succeeded by Jeffery Owen, who has served as Dollar General’s COO since 2019. Vasos, who has been Dollar General's chief executive since 2015, will serve in a senior advisory role from Nov. 1 through April 1, at which time he will retire from the company.” (Chain Store Age)
- Climate Change Makes Location Even More Important for Real Estate, Infrastructure “When it comes to real asset investments that are most at risk for higher costs from climate change, it's location, location, location.” (Pensions & Investments)
- Investors May Hold Key to Solving Affordable Housing Crisis “As average rents surge annually more than 11 percent nationally and as much as 39 percent in some cities, the housing ecosystem as a whole is responding with enhanced opportunities for collaboration to address the rental housing crisis. With pandemic-induced realities that have both necessitated and accelerated innovative public/private partnerships, investors and lenders are among those exploring new ways to develop long-term solutions to address pervasive concerns.” (Commercial Observer)
- In War for Workers, U.S. States Are Offering More to Convince Americans to Hop Borders “Some states are trying to gain that edge by essentially buying talent. West Virginia is offering $20,000 in cash and incentives to people willing to move to the state and live there for two years. In its first two years, the public-private partnership known as Ascend West Virginia says it has accepted 86 new workers among thousands of applicants, many of them relocating with spouses and family members. The program aims to attract more than 1,000 workers to the state over five years.” (CNBC)
- Robots Aren’t Done Reshaping Warehouses “Robotics and automation are not new to logistics; conveyor belts, scanners and other innovations have helped automate and accelerate the speed-obsessed industry for decades. But the pace of investment and change — fueled by the pandemic-era e-commerce boom, a tight labor market and a fragile supply chain — has taken off in recent years. Experts say robotics will change how warehouses are operated and designed.” (The New York Times)
- Cannabis Businesses Face Real Estate Challenges in New York City “Entering the cannabis business involves navigating complex laws and regulations surrounding real estate, experts say.” (New York Business Journal)
- Boston Properties’ Owen Thomas Doesn’t Fear Work from Home “It’s been Boston Properties’ mantra since just about the very beginning: A-properties in A-locations. What it means, and has meant since founders Mort Zuckerman and Edward Linde started the company in the early 1970s, is latch on to the very best skyscrapers in the very center of a small group of heavily studied, well-recognized markets. The world will repeatedly beat a path to them. Let others take the risk of developing in broader or emerging markets.” (Commercial Observer)
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