What I’m Reading
Tipping Point? Industrial developers are delivering nearly 700m sf of warehouses across the US following two years of record absorption. Tenant demand remains incredibly strong. However, with a recession likely coming, there is an increasing risk of overbuilding in SOME markets. Bisnow
Hitting Pause: Amazon has been making news for delaying the opening of some of its warehouses. It is now pausing work on six office towers, totalling 4 million square feet as hybrid work policies eat into the ecommerce giant’s need for space. Globe Street
Close to Home: US Treasury Secretary Janet Yellen is encouraging allies to develop a more resilient supply chain by relying on allies and friendly countries rather than potentially hostile trading partners. CNBC
Writing on the Wall: National Association of Home Builders CEO Jerry Howard says we’re heading into a housing recession and home builders are going to start holding off on new projects. Bloomberg
Bottleneck: Rail service at the Ports of LA and Long Beach has been hampered by a lack of labor availability and poor morale, inhibiting trade flow and causing more backups. Freight Waves
Chart of the Day
Narrative violation alert: the supply of single family rentals has been falling steadily over the past 7 years. Per JBREC, this is because many of the owned homes that became rentals during the GFC have converted back to owned homes.
Source: JBREC
WTF
Moooove: A freeway was shut down thanks to a group of loose cows because Florida. WFLA
Die Hard: A man who went to the hospital for a bad headache later discovered that his wife had shot him in the head while he was asleep because Florida. Herald Tribune
Basis Points – A candid look at the economy, real estate, and other things sometimes related.
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