What I’m Reading
Flexing: Leases on warehouse and distribution facilities are getting shorter as landlords seek flexibility to sign new tenants or renew existing leases at inflating rates. Typically, warehouse landlords (and lenders) have favored longer leases with strong credit tenants as a way to mitigate downside. High demand, tight inventory, soaring lease rates and inflation have changed this dynamic and led to landlords favoring flexibility, at least for the time being. Globe Street
Pain at the Pump: Placer.ai’s latest retail report found that soaring gas prices are having a substantial adverse impact on foot traffic. Overall visits to physical retailers dropped by 4.3% during the week of March 7, 2022, compared to the equivalent week in 2019. That is the steepest drop in weekly retail foot traffic over the past 12 months that can’t be attributed to the coronavirus pandemic or holiday shopping patterns. Placer.ai
Over the Falls: Mortgage refinance demand has plunged by 60%, as rates hit their highest level since 2018. CNBC Look for more layoffs coming to an originator near you.
Contingency Plans: :Logistics companies are raising pay and adopting flexible work standards and technology such as artificial intelligence to cope with a labor shortfall. Atlanta Business Chronicle
Dud: Life has largely returned to normal post omicron variant, with one notable exception. Office utilization is still very soft. According to building security provider Kastle, which has customers in more than 2,600 U.S. buildings in 138 cities, the average weekly occupancy is still just 40%. MarketWatch
Chart of the Day
Employer demand and newfound flexibility are drawing many early retirees back into the workforce after a surge in pandemic retirements.
Source: Wall Street Journal
WTF
Squatter: A worker putting the finishing touches on a new Fort Myers-area home this month discovered a gigantic 12-foot alligator loitering in the master bedroom because Florida. Miami Herald
Paging Mr. Darwin: A man checked himself into the hospital when his penis turned black and began to rot after he injected it with cocaine. NY Post
Basis Points – A candid look at the economy, real estate, and other things sometimes related.
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