Build to rent market surge, Apple Plans Office Project in North Carolina and more

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Construction's labor shortage: Where it's worst — and why link

• Crisis Point: The construction industry is grappling with a severe labor shortage, with 81% of firms struggling to fill positions.

• Geographic Woes: The shortage is most acute in the South, where 84% of contractors are finding it hard to hire, followed by the Midwest at 77%.

• Root Cause: The industry's struggle to attract younger workers, coupled with an aging workforce, is exacerbating the labor crunch.

Single-family homes built for the rental market jumped 35% to an all-time high last year link

• Record-Breaking Growth: Built-for-rent (BFR) single-family housing starts skyrocketed by 35% to 81,000 units in 2022, marking an all-time high.

• Increasing Market Share: BFR starts accounted for an 8% share of overall housing starts in 2022, up from 5% in 2021, setting another record.

• A Solution for Millennials: BFR homes are emerging as a viable alternative for millennials and first-time buyers struggling with low affordability, providing a temporary solution as they save for their first home down payment.

Net Lease Drugstores Provide Hidden Insights on Broader Real Estate Market Trends link

• Cap Rate Climb: Average cap rates for net lease drugstores rose from 5.44% in Q1 2022 to 5.93% in Q1 2023, a 48-basis-point increase. However, this is still 22 basis points lower than the trailing five-year average of 6.15%.

• Supply/Demand Shift: In Q1 2023, new on-market listings totaled 149, a 44% decrease year-over-year, and a 22% decrease from the five-year quarterly average of 191 listings. This shift in supply comes as demand for retail pharmacies has begun to decrease.

• Market Indicator: Net lease pharmacy segment, with its unique attributes and susceptibility to current inflationary pressure and rising interest rates, serves as one of the strongest indicators of how commercial real estate is reacting to today's macroeconomic challenges.

Fed Chair Powell Talks Two More Rate Hikes and the Yield Curve Steepens link

• Boosting Resilience: Powell praises global efforts over the past decade to enhance financial sector resilience as a significant success.

• Hawkish Outlook: Powell sets the stage for a more conservative view of the economy, hinting at the need for additional interest rate hikes.

• Recession Risk: These actions might contain inflation but could also trigger a recession, seen as a necessary tool.

Moderate Rent Growth in the Forecast for U.S. Multifamily link

• Steady Demand: Multifamily performance remains strong in mid-2023, bolstered by a robust job market that's driving housing demand and rent growth.

• Potential Challenges: The market is bracing for potential economic downturn and rising interest rates, factors that have already started to erode property values.

• Distress on the Horizon: These challenges are likely to lead to an increase in distress in the multifamily housing sector.