WeWork – doubled in size and 2017 & again in 2018 and is the largest private sector Real Estate occupier in NY, DC, London, & soon to be SF. They are going public this year to keep up with the projected $4 billion in annual lease spending. This NPR article breaks down the numbers and addresses some of the struggles & benefits (kombucha, cold brew, and & IPA on tap – networking events, etc.).
Rates – rates improved again this week as the 10 Year US treasury tested a floor of 2.10% – the lowest level we have seen since September 2017. If it breaks convincingly below that floor rates should improve further.
Jobs – the BLS jobs report numbers came in low – 75,000 jobs were created, over 100,000 less than expectations. Unemployment figures remained steady and both hourly and average weekly earnings are down slightly on a year-over-year basis.
Black Knight reported that payment-to-income levels hit a 1-year low at 22%. Lower interest rates, improved earnings & appreciation show health in the housing market. The longer term average is 25%