What I’m Reading
Danger Zone: Just when you thought that the situation at west coast ports couldn’t possibly get worse, contracts for 15,000 west coast dockworker union members are due to expire on July 1, 2022. Obviously, this situation gives the union a ton of negotiating leverage. As a point of reference, the current pact was only approved when the Obama administration intervened after a nine month labor dispute.
Beyond compensation, the biggest issue is likely to be automation, which the union has long resisted, keeping the Ports of LA and Long Beach far less efficient than those in other parts of the US. Transport Topics
Flight to Quality: Businesses trying to wean employees off remote work and lure them back to the office are spending more than ever on upscale workspaces, reaching deep into their pockets to pay high rents for modern, amenity-rich buildings. As a result, the gap between rents on trophy buildings and everything else are widening. Wall Street Journal
Reaching Down: Some institutional investors view smaller class C properties as the best – positioned asset class for an economic slowdown thanks to less competition and the wide gap between class A and class C rents. Globe Street
Chop Shop: Business is booming for a startup that pairs small businesses with logistics space in their warehouses, similar to co-working but for goods rather than people. The Real Deal
Musical Chairs: The economic recovery is resetting the power dynamic between employers and employees with some workers resigning, some sitting on the sidelines awaiting a prime gig and other demanding higher wages and remote options. NY Times
Chart of the Day
This is 100% a recipe for economic stagnation in the long run.
Source: Bloomberg Wealth
WTF
Underdog: In one of the greatest political upsets in history, a truck driver who spent a total of $153 on his NJ State Senate campaign dethroned one of the most powerful political kingpins in the Garden State. Wall Street Journal
Smile for the Flash: President Biden’s motorcade was flashed by a “large naked Scottish man while making its way from Edinburgh to Glasgow to meet with world leaders for the UN climate change summit. NY Post
Basis Points – A candid look at the economy, real estate, and other things sometimes related.
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