What I’m Reading
Long in the Tooth: The average US warehouse is 42 years old and only 14% of warehouses are less than 10 years old. This is a big problem in an industry that is changing rapidly where older product tends to be functionally obsolete. Newer buildings typically have substantially higher clear heights, superior fire life safety systems, more dock high doors and better access to power – all of which older buildings tend to lack. Older buildings also frequently have inadequate trailer parking space, necessitating the need for offsite storage. Conclusion: the supply shortage in the warehouse space may be even worse than it appears. Freight Waves
Strange Bedfellows: Amazon is turning to an unlikely ally in its effort to accelerate delivery in rural areas – local mom and pop shops. Recode
Cooling Down? The housing market is still white hot with prices up 20% YoY. However, inventory is beginning to increase as houses take longer to sell. To be clear, inventory is still near historically low levels but the direction and rate of change is shifting. Calculated Risk
Back on the Market: Office sublease availability is surging again after having dipped last year. Wall Street Journal
Quiet Part Out Loud: Federal Reserve Bank of Minneapolis President Neel Kashkari published an essay last week in which he admitted an uncomfortable truth. He wrote that if the supply-chain disruptions don’t resolve soon, the U.S. Federal Reserve may be forced to spur a recession. Bloomberg
Chart of the Day
Household inflation varies widely depending on living situation.
Source: New York Times
WTF
When You’ve Gotta Go: Police arrested a woman who allegedly stripped and urinated on the floor of a North Carolina Walmart after going on a profanity-laced tirade through the store and hitting an employee. (h/t Adam Siegel) Yahoo! News
At Least He Was Honest: A driver pulled over for going over 100 mph on a causeway said that he had ‘a little meth’ before driving because Florida. News Channel 8
Basis Points – A candid look at the economy, real estate, and other things sometimes related.
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