Power Reads: 5 Interesting Articles That Will Help You This Week

Each week, I select a few articles that rise above the fray and hopefully help you on your journey in leadership and the CRE world. They pull from one of four "corners": corporate real estate, technology, management science and anything positive. Each day we can become a better version of ourselves.

1. Strong Jobs Report Offers Hope for the Labor Market

Friday’s employment report revealed an improving labor market for many, as 943,000 jobs were added in July, the unemployment rate fell to 5.4% and average weekly earnings rose by 0.4% over the month. The news comes as a relief to those still waiting for the economy to return to normalcy.

Generous measures of government support have helped stabilize household finances in what would otherwise have become Depression-era conditions, given the massive loss of jobs seen in March and April of 2020. Even so, households continue to accumulate debt, although not nearly as much as might be expected had that support not been forthcoming.

Household debt grew by $313 billion in the second quarter, or by 2.1 percent, according to a report recently released by the Federal Reserve Bank of New York. While that marked the fastest rate of growth in 14 years, things might not be as dire as at first glance. In addition to higher debt burdens, outstanding household debt can grow due to population growth and inflation.

2. Pay cut: Google employees who work from home could lose money

Google employees based in the same office before the pandemic could see different changes in pay if they switch to working from home permanently, with long commuters hit harder, according to a company pay calculator seen by Reuters.

It is an experiment taking place across Silicon Valley, which often sets trends for other large employers.

Facebook (FB.O) and Twitter (TWTR.N) also cut pay for remote employees who move to less expensive areas, while smaller companies including Reddit and Zillow (ZG.O) have shifted to location-agnostic pay models, citing advantages when it comes to hiring, retention and diversity.

Alphabet Inc's (GOOGL.O) Google stands out in offering employees a calculator that allows them to see the effects of a move. But in practice, some remote employees, especially those who commute from long distances, could experience pay cuts without changing their address.

3. If you’re working while on vacation this summer, this column is for you

You know how the creep begins. An email here, a meeting there, a “Let me just deal with this now” and two hours later… your holiday is over.

This summer feels especially vulnerable to the blending of work and relaxation because that’s been the case for so much of the last year. And setting boundaries now feels really hard...to impossible. Some of us (guilty) are scheduling time away in beautiful places thinking we can do it all. Indeed, Americans plan to take an extra five days of vacation this year. One survey found that nearly two-thirds of respondents felt vacation deprived. In a global ranking, Americans took the fewest number of vacation days last year.

“The pull of inertia is challenging to overcome,” said Leah Weiss, cofounder of Skylyte, a mental-health startup. “The risk of burnout increases when we do not build structured rest into our lives.” She notes the problem predates the pandemic due to workers’ “beliefs that they can't face the workload they will be met with when they return or a conviction that they are indispensable to their teams.”

4. Class C Multifamily Properties Face Greatest Exposure As Moratoria Expire

Institutional-grade multifamily product will likely emerge from the looming end of eviction and foreclosure moratoria relatively unscathed, but Class C properties in less recovered markets are staring down greater exposure. 

That will leave some landlords in the precarious position of deciding whether to evict (and potentially draw big rent increases with new tenants) while assessing the risk of foregone rental arrears, according to a new report from Cushman & Wakefield.

“On the one hand, this means that owners will have renewed freedom of action,” writes C&W’s Kristina Garcia in the report. “On the other, were there to be a significant increase in turnover in the market as a result of increased evictions, occupancies would fall, likely resulting in a decline in rents.”

5. AMC Theatres Signals the Future of Cinemas With Plans To Add Venues, Screen More Than Movies

AMC Theatres is betting that a resurgence in Americans heading out to cinemas will accelerate as the world’s largest theater operator looks at buying real estate in Los Angeles, Chicago and Atlanta and plans to screen more sports, concerts and video-gaming events.

The number of visitors to Leawood, Kansas-based AMC Theatres across the United States tripled from the first quarter of this year as theaters reopened in major markets with vaccinations increasing and blockbusters returning such as Disney’s “Black Widow.” Rival chains including Texas-based Cinemark Theatres reported similar gains.

It's time for "AMC to be playing offense again” after more than a year of pandemic restrictions, CEO Adam Aron told analysts on a conference call to discuss its second-quarter earnings. Revenue surged to $444.7 million in the three months ended June 30 from $18.9 million in the year-earlier quarter at the height of the pandemic. Its net loss narrowed to $344 million from $561.2 million.

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