In the News

Florida has overtaken New York as the second most valuable housing market in the United States, with its residential property values surging by $160 billion over the year starting in June 2022, according to research by Zillow. This shift is attributed to increased demand for living in Florida, driven by factors such as the pandemic-induced exodus from high-tax and high-restriction states. California remains the most expensive residential real estate market, although its property values decreased by 3.3% since June of the previous year. Overall, Florida’s housing stock is now worth $3.8 trillion, surpassing New York’s $3.69 trillion, with Miami emerging as one of the top five metropolitan areas in terms of housing stock value. New York City still holds the top spot, with its real estate valued at $4.24 trillion, followed by Los Angeles with $3.71 trillion.

VanEck’s new exchange-traded fund (ETF) tied to office real estate investment trusts (REITs) faced an immediate setback when one of its holdings, W.P. Carey, announced its exit from the office sector, causing a 7% drop in the ETF’s share values just one day after its launch. Despite this setback, some industry experts, such as Sher Hafeez from JLL Securities, remain optimistic about a potential long-term rebound in office REIT valuations. VanEck maintains its confidence in the office sector’s recovery prospects, emphasizing the benefits of its ETF structure for diversified exposure to the category. The office sector faces challenges, but it also presents opportunities, with signs of improved performance in certain segments and shifting investor attitudes.

The impending restart of student loan payments on October 1, impacting 43 million borrowers with $1.6 trillion in outstanding debt, raises concerns about its effect on consumer spending, a key economic driver. While the Department of Education’s income-driven SAVE plan offers relief for many borrowers, the Federal Reserve’s interest rate hikes and falling median household incomes are already straining consumers. Rising delinquency rates on credit card and auto debt further compound the challenge. Although shifting budgets toward student loan payments may cause a modest drop in personal consumption expenditures, consumer spending remains pivotal for the economy’s stability. Additionally, the housing market faces ongoing difficulties, marked by high mortgage rates and low inventory, as the National Association of Home Builders Housing Market Index declines for the second consecutive month.

Amazon has plans to double the number of same-day delivery centers it operates, which are seen as the fastest and cost-effective fulfillment mechanism for the company. These facilities are designed to streamline the process of getting items from order to delivery readiness in as little as 11 minutes. Amazon’s same-day delivery centers are strategically located based on population density, with some of the most populous metropolitan areas having multiple centers. The facilities are typically located in buildings with high ceilings, averaging 33 feet, allowing for tall racking systems to accommodate a large volume of merchandise. The company focuses on properties ranging from 100,000 to 225,000 square feet in size. The expansion of these facilities is expected to enhance Amazon’s delivery speed for customers.

Decline in Office Values Outpaces Great Recession, Blackstone-Owned New York Office Building Goes Up for Sale, Silver Star To Sell Properties Tied to Loan By Mark Heschmeyer and Nicole Shih, CoStar News, September 21, 2023 | 10:19 A.M. Decline in Office Values...