What I’m Reading
Tapping the Brakes: From construction cost increases, to higher interest rates and rate cap costs and slowing sales, inflation is taking a toll on the CRE industry. Globe Street My guess? We are about to see a substantial slowdown in new development as the cost of capital and construction make new projects unviable.
Shock Therapy: Last week’s scorching CPI number has made it far more likely that the Fed will hike rates by 75 basis points when it meets this week. CNBC At this point, who knows how markets will respond. Nothing would surprise me.
South of the Border: A rising number of Californians are migrating out of the country and headed to Mexico as a way to escape the spiraling cost of living, yet stay as close as possible to home. Of course this has implications for locals who are seeing an influx of wealth into their communities but also now have to compete with wealthy foreigners for housing. CNBC I, for one can’t wait until a bunch of NIMBY Karen carpetbaggers start pushing to “protect the character” of TJ and not allow any new construction.
Mixed Use: Kroger sees hybrid shopping – where consumers utilize both physical and digital retail channels – continuing to grow post pandemic. The shift towards pick-up groceries and utilization of stores as micro fulfillment centers has been a big boost for grocers. No reason to expect that this wouldn’t continue. Chain Store Age
Behind the Curve: America’s labor market recovery has been swift. However, the recovery has not been even. The private sector has recovered 99% of all jobs lost during the pandemic, but public sector has regained just 58% — one illustration of the gaping hole that persists in certain areas of the economy. Axios
Chart of the Day
Real wages continue their free fall.
Source: The Daily Shot
WTF
Joy Ride: A school bus driver confessed to driving his bus drunk with children on board after being arrested for DUI because Florida. NBC 2
Getaway Car: A man was arrested for carjacking a street sweeper because Florida. Tampa Free Press
Basis Points – A candid look at the economy, real estate, and other things sometimes related.
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