The potential impact of rising steel prices on commercial real estate
President Trump’s recent executive order imposing tariffs on steel and aluminum imports (25% and 10%, respectively) could increase the cost of commercial real estate construction. Costs will vary by asset type, local market conditions and materials used, but high-rise office and industrial building construction costs could rise modestly. While commodity prices have fluctuated in recent years, the primary driver of higher construction costs has been a scarcity of skilled labor, particularly in metro areas with the most development activity.
If Clicks Were Bricks: Assessing the threat to malls from online shopping
The mall is one of the most successful business models of all time, so its recent loss of traction in the marketplace has caused concern in the U.S. retail property sector. There has been a tendency to attribute the lack of growth to online sales and concomitant growth in the logistics sector, but is e-commerce really the juggernaut of popular perception?
February Jobs Report: Employment growth surprises to the upside, wage growth does not
Employment gains continued to surprise to the upside in February. Meanwhile, wage growth slowed slightly—after the strong January increase that led investors to believe higher wage growth might be imminent. February’s report may quell some of that concern. Hiring increases were broad-based and robust in the construction, retail trade, manufacturing, professional & business services, financial activities, health care and mining sectors.