US Manufacturing Slowdown Leads to Workforce Cuts

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Good morning. American manufacturers are facing a series of hurdles to continued growth, including lower demand and rising costs, which have impacted production and led to plenty of workforce cuts.

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• Follow the leaders: Cushman & Wakefield's (CWK) Q2 profits surged to $13.5M from $5.1M YoY, and the firm foresees more sales growth after upcoming Fed rate cuts.

• Bottom's up: Alternative property sectors saw a 34% drop in sales volume during Q2, with $8.6B in investment volume.

• Avoiding a crisis: Despite warnings of potential issues from maturing CRE loans, small and regional banks have largely weathered the storm, with few bank failures in 2024.

• Uneven growth: While some Southern cities are booming economically, many states in the region remain among the poorest in the nation.

• Rent rises: Chicago rents rose over $120 from March to June, reaching $2.2K per month, which is considered affordable if residents have an annual household income of at least $88K.

• Student housing surge: Muinzer acquired over $250M in student housing near Purdue University, 99% pre-leased, as US multifamily sales decline.

• Lead paint limbo: A NY landlord lawsuit challenges the city's lead-testing system after a private lab disputed a $27K lead abatement, impacting landlord rights and property costs in the city.

• Missed expectations: Digital Realty's (DLR) Q2 revenue dropped by 0.7% YoY to $1.36B, missing expectations, with shares dipping to $145.65.

• Rural revolution: Amazon (AMZN) expanded its ultrafast delivery to rural US destinations, targeting 90% coverage. The e-commerce giant is also delivering more of its own packages now.

• Bigger in Texas: Microsoft (MSFT) plans to build a $482.6M, 244.7 KSF data center in Castroville, TX, scheduled for completion in early 2028.

• Record-breaking retail: Consumer spending boosts retail occupancies to record lows, with multi-tenant vacancies hitting an all-time low in March.

• Seizing opportunity: Blackstone is considering the acquisition of Retail Opportunity Investments Corp, a retail REIT with a focus on shopping centers, following a significant drop in its stock value.

• Retail roundup: Orion Real Estate Group bought a $50M retail net lease portfolio covering 94 KSF in 5 major US markets.

• Meteoric expansion: Nick the Greek expands rapidly, with plans for 25 new locations in 2021, aiming for 100 total by 2024.

• Fast food fallout: McDonald's (MCD) sees global sales slip by 1% in Q2, Ronald’s first decline in 13 quarters, although MCD shares are up 4% on the success of $5 meal combos.

• Tech boom: Flint, MI, leads emerging tech hubs across the country with 114% growth in high-tech wages, followed by Brownsville, TX, and Racine, WI.

• Bay Area bargain: SoCal investor BH Properties aims to acquire a San Francisco office for $13.5M, an 80% discount from a decade ago.

• Unlocking growth: Sun Belt real estate trust executives are ready to increase their investments in high-end offices due to compelling opportunities currently available.

📈 CHART OF THE DAY