What I’m Reading
Anchors Aweigh: Tenant turnover in buildings owned by multifamily REITs are at record lows despite rapid rent growth. This likely continues so long as the for sale housing market remains expensive. Bisnow Its a pain in the ass to move to a new apartment and trade out growth is way above renewal growth so the best option for tenants is often to absorb the large increase and stay put.
Leading Indicator? Amazon’s rapid expansion in both labor and capital capacity over the past couple of years turned out to be a leading indicator of inflation. The overbuilding and over hiring comments in its latest earnings report may be a good indicator that inflation is slowing. Bloomberg
Behind the Scenes: Off market apartment transactions are becoming more frequent. According to Thomas Foley, co-founder and CEO of Archer, two out of three private multifamily transactions are done off market, while about half of sub-institutional deals and a third of institutional deals are off-market. Globe Street These numbers seem quite high to me but lets just say that the definition of “off market” in commercial real estate these days is a bit loose.
Pit of Misery: A recent survey from Future Forum found that workers across multiple countries who are back in the office five days a week are twice as unhappy as their remote-work colleagues. Commercial Observer
The Takeover: WeWork may have become a punchline when it famously declined from an incredibly inflated valuation. However, office life in the US has quietly embraced several of its core tenets from high levels of aminitization to aesthetics to hot desking or hoteling. Wired
Chart of the Day
TIL that 9 people were somehow killed by Labradors between 2005 and 2017.
Source: Statista
WTF
Packing Heat: A Louisiana woman who fired a shot at a male acquaintance who refused to perform oral sex on her pleaded guilty to a felony gun charge. The Smoking Gun
Sugar High: An alligator broke into a garage and chugged the owner’s stash of Diet Cokes because Florida. The Smoking Gun
Basis Points – A candid look at the economy, real estate, and other things sometimes related.
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