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Eight Must Reads for the CRE Industry Today (May 31, 2022)

Resistance to returning to daily commuting remains an obstacle to getting more workers to return to offices, reports The Wall Street Journal. Rapid grocery delivery service GoPuff is scaling back its warehouse footprint, according to The Real Deal. These are among today’s must reads from around the commercial real estate industry.

  1. Dreaded Commute to the City Is Keeping Offices Mostly Empty “The anti-commute phenomenon is global, said IWG’s Mr. Dixon, whose company manages around 3,500 office locations in over 120 countries. Offices in smaller cities and in the suburbs are fuller than in commuter cities like Los Angeles and London, he said. Big cities with good infrastructure and plenty of affordable housing, like Copenhagen, are also seeing high occupancy because people are able to live closer to work, he added.” (The Wall Street Journal)
  2. Gopuff scaling back warehouse footprint amid rapid-delivery slowdown “Gopuff has been down this road before. The company has evaluated warehouse profitability in the past and facilities that aren’t doing enough business, even earlier this year reportedly bailing on plans for new warehouses.” (The Real Deal)
  3. Industrial Revolution Continues: 'Ongoing Boom' Draws Out Latest Crop Of Newcomers “While longtime powerhouses like Prologis and Panattoni plow forward with their own mammoth projects — and Amazon admits that it has too much industrial space on its hands — other companies are making their debut, hoping to seize on some of the continued demand and expanding yields.” (Bisnow)
  4. CRE Price Growth is Slowing but Still Going “Broken out by property type, both industrial and multifamily grew 1.3% between March and April, suggesting about a 16.8% annual growth rate, down from the 26% and 23% year-over-year figures. Retail’s 0.6% month-over-month would translate into a yearly figure in the mid-7s, about the same for all office assets.” (
  5. Inside the frenzied negotiations to salvage a controversial real estate tax break “Lawmakers and Gov. Kathy Hochul did not reach a deal to continue the incentive — reformed and rebranded by the governor as 485-w — when they were hammering out a state budget in March and early April. That pushed the matter to the current legislative session, giving the governor less leverage over lawmakers.” (Politico)
  6. Facing Inflation-Weary Shoppers, Grocers Fight Price Increases “Cincinnati-based Kroger is checking prices of every commodity, as well as packaging costs, to make sure suppliers’ price increases are warranted, and is devoting more resources to run pricing analyses, said Stuart Aitken, chief merchant and marketing officer at the nation’s biggest grocer.” (The Wall Street Journal)
  7. N.Y.C. Companies Are Opening Offices Where Their Workers Live: Brooklyn “And some are taking more drastic measures to make the return to work appealing: picking up their offices and relocating them closer to where their employees live. In New York City, the moves reflect an effort by organizations to reduce a major barrier to getting to work — the commute — just as they start to call their workers back.” (The New York Times)
  8. NYC’s Population Plummeted During Peak COVID — And It’s Still Likely Shrinking “Anyone fighting to find a scarce apartment to rent might think the local population is rebounding two years after COVID drove an exodus out of New York City. But information tracked by the federal government suggests that, while the rate of decline is slowing, more people are continuing to exit or die, than are being born or moving here.” (The City)
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