Market Update | 01.10.24

DID YOU KNOW?

Top Headlines: Delivered by Leonard Steinberg

January 10, 2024

01  New York, Los Angeles, Chicago, Dallas and Houston have around 200 or more apartment projects facing potential distress due to sharply higher interest rates. Multifamily assets valued at more than $67 billion are potentially distressed, the most of any property asset class, according to data compiled by MSCI Real Assets.

(Bloomberg)

02  “Snowflakes are one of nature’s most fragile things, but just look what they can do when they stick together."

–Vesta Kelly

03  The average value of US cropland jumped 8.1% last year and has risen by more than a third since 2020.

(Bloomberg)

04  More Power needed! Vantage Data Centers plans to use a recent $6.4 billion capital infusion to add more than 3 gigawatts of capacity globally...... enough to power more than 2.5 million homes. 

Vantage already has 32 data-center campuses on 5 continents. The expansion is in response to growing AI demand from tech companies such as Microsoft, Google, Oracle and Amazon Web Services. The new capacity will cost about $30 billion, including debt. Electricity shortages have surfaced in some of the most desirable locations.

(WSJ)

05  Only about 10% of luxury buildings planned in 2023 made it to shovel into the ground. I don’t think supply will really increase much in 2024: if demand stays consistent and eats up that supply we could see prices rise again.

–Kevin Maloney PMG (CNBC)