What I’m Reading
Stepping Up: Amazon is pulling back on its logistics expansion after aggressive buying and leasing in recent years. Target is picking up some of the slack and is is sharply expanding its logistics footprint across the U.S. to build up capabilities to handle growing sales at both its physical stores and online. Target plans $4 billion to $5 billion in capital spending every year over the next few years, which would be an increase of more than 40% from last year. (h/t Scott Ramser) Wall Street Journal
Roller Coaster: The war in Ukraine has triggered unprecedented treasury volatility (outside of March 2020). As a result, mortgage rates have swung wildly over a short period of time. US Housing & Mortgage Market Weekly
Ghost Town: Manhattan’s office availability rate hit 17.4% last month, a new record, according to Colliers data. Since the pandemic began in March 2020, overall availability has increased by 74.1% and now sits at nearly 94M SF. Bisnow
Just Take My Money: Buyers are increasingly differentiating themselves with non-refundable deposits in the white hot multifamily market. Globe Street
Show of Strength: Friday’s jobs report came in above consensus with upward revisions for November and December as well. Calculated Risk Blog
Charts of the Day
“Pre-2008, housing costs were determined by differences in local supply. Some cities grew 3% annually with no cost problems. In others prices soared at 0.5%.”
“Since 2008, any growth causes housing costs to soar everywhere because we cut off entry level single family building everywhere”
Source: Kevin Erdmann
WTF
Here Kitty, Kitty: The International Cat Federation has banned Russian-bred cats from their shows. I suspect that Putin’s full and unconditional surrender is imminent after he receives the news. Washington Post
Honest Mistake: A man who was arrested after ramming his pickup truck into a home three times while cursing at the homeowner claimed that it happened after his “foot slipped” because Florida. ABC 7
Basis Points – A candid look at the economy, real estate, and other things sometimes related.
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