QUOTE(S) OF THE WEEK:
“I am about ready to hang this thing on my refrigerator. I have yet to find a single blemish in this jobs report. I’ve never before seen such a wonderful set of economic data.” – Harvard economics professor Jason Furman, in a tweet.
- US employers added 943,000 jobs in July, most since Q3 2020.
- August numbers will be telling to see how much the Delta variant has affected things.
- 40% of job gains from hospitality sector.
“Smartphones have historically been largely consumption devices….but they’re now quickly becoming the primary transaction device.” -eMarketer principal analyst Andrew Lipsman
- Mobile commerce (“M-Comm”) is expected to almost double its share of annual US retail sales by 2025, to 10.4%—or $728+ billion.
- Retail is evolving so fast that having just a website is not even enough anymore. Apps compatible with phones and tablets are becoming vital for buying-on-the-go.
CHART OF THE WEEK:
With the 2020 US Census data being released later today, below is what the Census Bureau has estimated the results will look like:
West Michigan is pacing the state in terms of population growth…..
STAT(S) OF THE WEEK:
GreenStreet Advisors’ Property Price Index grew 14% over the past 12 months. 2.4% in July alone.
- This Property Price Index is a “time series of unleveraged U.S. commercial property values that captures the prices at which commercial real estate transactions are currently being negotiated and contracted.”
GreenStreet also estimates that approximately 20% of big box shopping mall anchors are currently sitting vacant.
- Anchors are key traffic drivers, and thus vital, for ancillary retailers.
- New types of potential uses:
- Educational
- Medical/dental
- Self-storage
- Fulfillment-only centers
ARTICLES OF THE WEEK:
Parking – City valet as a solution? – StrongTowns
- Many cities currently operate garages downtown at a loss, especially considering the opportunity cost of what the land could be used for – producing tax revenue and creating jobs.
- Supply is often not the problem; cost, proximity to destination, and overall hassle usually is.
- During pandemic, lots of street parking was re-purposed for outdoor seating and curb-side pick-up.
- One city is implementing a strategical valet service throughout the city’s downtown to take parking out of the core, while still allowing the customer to get close to their final destination.
- This improved flow of traffic, too, by reducing congestion caused by people driving around looking for spots.
Office – Activity up – Globe St.
- Touring activity is markedly up in main and secondary markets, however “notable deal volume” has yet to materialized.
- Q3 & (especially) Q4 should see a release of some pent-up demand.
- 77% of office-using jobs lost since March 2020 have been recovered (and growing).
- Labor Day remains key inflection point, despite back-to-work mandates being delayed in some instances due to Delta.
Industrial – Rent growth of up to 10% more? – ProLogis/Globe St.
- Record-breaking industrial absorption continues to push rental rates higher throughout second half of the year.
- Looking forward, target inventory-to-sales ratios will likely be higher in a bid for resilience, pushing up utilization rates and supporting logistics demand as supply chains boost inventories.
Retail – Wendy’s to open 700 ghost kitchens – Bisnow
- First time we have seen this trend on such a large scale.
- Will be located throughout the US, UK, and Canada.
- Partnership with REEF Technology.
- Backed by over $1B from equity sources.
Retail – Cascade retail center to get a new look & feel? – WOOD8
- Shuttered Family Video on 28th St SE may soon be home to a new micro-fulfillment center for grocery delivery company GoPuff.
- Additionally, healthy-eating franchise Clean Eatz plans to open it’s first Grand Rapids location in the adjoining former-Wendy’s.
Enjoy the rest of the week!
