Bookmarks: 5 Interesting Articles That May Help You This Week

January 14th, 2019

Each week, I select a few articles that rise above the fray and hopefully help you on your journey in the CRE world. They pull from one of four “corners:” corporate real estate, technology, management science and anything positive. I welcome your comments on these articles.

Credit: iStock

Construction Costs Complicating Developer Pricing, Tenant Decisions

“At North American Properties‘ Colony Square redevelopment project, the prolific developer secured an agreement with its general contractor that will cap any construction cost increases.

That was something that the developer rarely ever considered before the Great Recession of 2008, Managing Partner Mark Toro said.

“Pre-recession, we did not see the kind of run-up [on construction pricing] that we have seen this time in this cycle,” Toro said. “The level of activity is not unprecedented by any means … but it’s by far the most activity we’ve seen in our careers. And that’s what’s leading to the pricing pressure.”

“After a morning of tedious three-ring-binder presentations from executives, and stuffy lectures by professors, it was time for the keynote speaker. Herb walked to the podium, lit a cigarette, poured a glass of Wild Turkey bourbon, and delivered what remains the most hilarious, baudy, utterly brilliant CEO speech I have ever heard. When I spent a little time with him after the talk, I realized immediately that I was in the presence of leadership greatness — an entrepreneur who was as smart as he was sassy, as competitive as he was human, as consequential as he was approachable.”


How Google Will Destroy Uber

“Google’s Waymo has officially launched the world’s first self-driving, ride-sharing service! Residents in four Phoenix suburbs can now ride around in its robo-taxis for a small fee.

In RiskHedge, I recently explained why self-driving cars are going to gut the auto industry like a fish. And Phoenix is only the first step in Waymo’s domination of American roads.

Here’s why…..”

This Book List Will Almost Earn You A Ph.D. In Leadership

“Some books stick with you, long after you’ve closed the cover. The best books linger for decades, changing the way you look at the world. Those were the sorts of books we requested when we asked 20 world-class scholars to recommend titles for our 2018 list of the best leadership books available.

You can’t actually earn a Ph.D. in leadership from reading these books. (If you really do want to earn your doctorate, we hope you’ll check out this Ph.D. program in leadership, for senior executives.) What the books will do for you, however, is provide mind-stretching insights that help you think deeper and lead stronger.

We assembled this list of readings from some of the smartest people we know: top scholars with extensive practitioner experience. We asked them to tell us about the books that changed the way they think and lead.

The remarkable list ranges in year of publication from 1958 to 2018, and the topics are almost as diverse. Below we share the insights of the experts who recommended each title. We also suggest who on your holiday list might enjoy reading each book”

Here’s What the Big Tech Companies Know About You

“The novelty of the internet platform boom has mostly worn off.

Now that companies like Facebook, Amazon, and Alphabet are among the world’s most valued companies, people are starting to hold them more accountable for the impact of their actions on the real world.

From the Cambridge Analytica scandal to the transparency of Apple’s supply chain, it’s clear that big tech companies are under higher scrutiny. Unsurprisingly, much of this concern stems around one key currency that tech companies leverage for their own profitability: personal data.”

Your success blesses others. I wish you a great a hugely impactful week!

We Interrupt The Normal Bookmarks Blog Post to Bring You Some POSITIVE Economic News

January 7th, 2019

For a number of years I’ve curated updates in this space on the CRE world. Today, we take a short break to focus on a different topic – the economy. I’m frustrated that some media outlets harp only on the negative news at every turn. This is one of the best economies of our lifetime – please read beyond the trending and check out the good news out there. #factsmatter #don’tjustreadtheheadlines

Credit: iStock

The Labor Market Would Like You All To Stop Panicking Now Please

“Job gains were led by the healthcare industry, which added 50,000 jobs in December, as well as construction, which added 38,000 jobs. Construction employment increased by 280,000 jobs over the year.” 

'The Labor Market Would Like You All To Stop Panicking Now Please': Economists React To December Jobs Report On Twitter

Fed Chair in Atlanta Boasts About Economy

“…Powell said he remains upbeat and has not made up his mind about further rate hikes this year.

“There is no preset path for policy,” he said. “We are always prepared to shift economic policy and to shift it significantly.”

The Fed is “listening carefully to the message that the market is sending,” he said.

Powell spoke Friday after release of the monthly government report that showed a gain of 312,000 jobs in December – about twice as many as had been expected. The report also showed wages rising. While the unemployment rate ticked up to 3.9 percent, that increase was caused by a surge of new workers, he said.

That report was evidence that the economy is chugging along steadily and can probably more easily handle more rate hikes.”


Strong U.S. Job and Wage Growth Provides Assurance on Economy

“All the while, the economy kept cranking out jobs. U.S. employers added a net 2.64 million jobs to their payrolls in 2018, the best year since 2015. Payrolls have grown for 99 straight months, by far the longest stretch of steady hiring on record.

The unemployment rate ticked up to 3.9% in December from 3.7% but remains low by historical standards. The increase owed in part to more people entering the workforce, some of whom get counted as unemployed while they’re looking for work.

Stock prices, already moving up on the economic news, jumped even higher after Federal Reserve Chairman Jerome Powell said the Fed would be patient about further increases in rates this year.”[WSJ Paywall]


Businesses across many sectors have been searching for workers as the labor market has tightened.
Businesses across many sectors have been searching for workers as the labor market has tightened. PHOTO: JOE RAEDLE/GETTY IMAGES

U.S. Stocks Surge on Powell Remarks, Jobs Report

“U.S. stocks bounced back from their worst two-day start to a year since 2000, soaring Friday after fresh signs of economic strength eased fears that slowing growth around the world could drag on the U.S. expansion.

The Dow Jones Industrial Average jumped nearly 750 points as better-than-expected hiring in December suggested a healthy labor market. Stocks rose further after Federal Reserve Chairman Jerome Powell said economic data suggest good momentum heading into the new year, but that the central bank is “prepared to adjust policy quickly and flexibly” if necessary.

The combination mitigated investors’ worries about an economic slowdown. Those fears sent waves of volatility sweeping through stock and bond markets in recent weeks…” [WSJ Paywall]

Q and A on the Big December Jobs Report

“The big news is that the jobs market apparently didn’t get the memo that the U.S. economy was barreling toward a recession. In fact, the jobs numbers came in a lot stronger than expected. Payrolls were up 312,000 in December, compared with expectations for about 180,000, and bringing the full count of jobs added for 2018 up to 2.6 million jobs, the strongest year for job gains since 2015. Wage growth accelerated slightly and, at 3.3 percent (before inflation) for mid-level workers, tied an earlier cyclical high. Weekly hours edged up slightly, jobs gains for the prior two months were revised up, and 70 percent of private industries added jobs on net, a high share for that metric.”

Your success blesses others. I wish you a great a hugely impactful week!