Forget multifamily. The next big oversupply concern appears to be office-related. Cushman & Wakefield’s Global Chief Economist Kevin Thorpe has said a “scary” amount of office space is under development: about 700 million sq. ft. this year globally, by the commercial real estate service firm’s estimate. Although China is taking the lead, office overbuilding is of significant concern in markets such as Brooklyn, New York; Austin, Texas; San Francisco; Nashville, Tennessee; and Seattle, CushWake says. As job growth slows, all of this construction could become an issue in the medium term. (Via Chief Investment Officer)
The significance of tax code changes to carried interest are still weighing heavily on CRE investors’ minds, according to Commercial Observer. Proposed changes could jump the taxation rate to nearly 40%. The magazine explores whether these whispers in the wind will work to mute deal flow for the remainder of the cycle. (Via Commercial Observer)
It’s been tough to assess the Federal Open Market Committee’s real feels on inflation. This month’s vote to increase the interest rate was not unanimous — and is Reuters now reporting feel-good news? New York Fed President William Dudley has said U.S. inflation is expected to rebound, but who does he speak for? Slowing job growth has been a macro concern raised by economists. Reuters describes Dudley as a “close ally of Fed Chair Janet Yellen.” (Via Reuters)
More News to Note:
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Millennials Spot Next Buying Trends, Established Generations See Digestion Pains