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. Companies Struggle to Keep Their Tech Workers From Logging Off

JOHANNES EISELE/AGENCE FRANCE-PRESSE/GETTY IMAGES

Many information-technology workers in the U.S. are on the hunt for new jobs, seeking a wider array of remote work options, better chances for promotions and bigger paychecks, as Covid-19 restrictions ease and the economy rebounds.

That has many employers redoubling efforts to recruit and retain skilled IT workers, who were already in short supply before the coronavirus pandemic.

“Companies across all industries are struggling to secure this talent and in many cases new hires are simply replacing recent departures,” said Craig Stephenson, managing director of the North America technology officers practice at consulting firm Korn Ferry.

At the same time, demand for workers with expertise in engineering, cloud computing, data analytics and cybersecurity has never been higher, as companies retool post-pandemic operations with digital technology, Mr. Stephenson said.

2. Warehouse Rents Surge on Bidding Wars for Scarce Space

The U.S. warehouse market is starting to look like the red-hot housing sector, as companies jockey for scarce distribution space to meet surging e-commerce demand.

The competition is driving up industrial rents as retailers and logistics providers race to move goods closer to population centers, with some engaging in bidding wars for the most coveted sites. Businesses are pushing to deliver online orders faster to the homes of digital shoppers and responding to growing consumer spending that is helping drive an economic rebound.

Demand for industrial real estate is so strong that taking rents—the initial base rent agreed on by a landlord and tenant—are rising faster than asking rents, according to real-estate firm CBRE Group Inc. Industrial taking rents were up 9.7% in the first five months of 2021 compared with the same period last year, while industrial asking rents rose 7.1%, according to CBRE, which tracks 58 U.S. markets.

3. Economy Is Showing Sustained Progress, Powell Says

Federal Reserve Chairman Jerome Powell said Monday that job growth should pick up in coming months and temporary inflation pressures should ease as the economy continues to recover from the effects of the pandemic.

“The economy has shown sustained improvement,” Mr. Powell said in testimony prepared for delivery Tuesday on Capitol Hill, noting progress on vaccinations and vast stimulus efforts by Congress and the Fed.

Mr. Powell is set to appear before the House Subcommittee on the Coronavirus Crisis to discuss the Fed’s efforts to shore up the economy since the start of the pandemic.

4. Coworking Operators Emphasize Collaboration As They Rework Space For Return To Office

As more markets roll back pandemic-era restrictions on occupancy and more employers firm up plans for a return to the office, coworking operators are keeping up with the expectations and desires of users by updating spaces.

The alterations have evolved since the start of the pandemic. Coworking operators made early investments in air quality and HVAC systems as well as sanitation measures. But now, many users are looking for other accommodations geared more toward getting people back into the office and giving them a welcoming space suited to new work needs once they arrive.

WeWork reported Monday that April and May were its strongest months for leasing since before the coronavirus pandemic, with gross desk sales for those two months reaching an equivalent of about 4.3M SF.

5. Retail Is Coming Back Without Having To Make Sweeping Changes

The coronavirus pandemic has finally loosened its grip on retail, and the recovery looks a lot like a return to normalcy.

From the initial outbreak through the holiday season, it seemed as if the pandemic had accelerated pre-existing trends in retail, possibly spelling doom for long-struggling sectors. But even as online shopping has remained strong enough to drive profit explosions for the largest retailers, department stores and sit-down chain restaurants have seen meaningful growth in foot traffic in the past two months, data firm Placer.ai reports. The data comes on the heels of similar improvements from suburban shopping malls in April.

Dillard's and Kohl's have almost recovered to 2019 levels of foot traffic, and while Nordstrom and Macy's still lag behind their numbers from two years ago, they made stark improvements from February and March to May, Placer.ai reports. Though locations of Orangetheory Fitness still saw 14% less foot traffic in May of this year than in May 2019, Planet Fitness matched its May numbers from two years ago.

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

Ken Ashley