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Commercial Real Estate Lens: Need to Know

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 Trump plans to pick next Fed chair before 11/3 Asia trip

Most US states aren't prepared for the next recession

•Moody's unit buys stake in startup CompStak

•Don't blame hurricanes for slow housing starts: August response for building permit activity were "not significantly lower than normal."

•The largest office lease in San Francisco history

•Fledging PE firm is investing in "co-living" buildings that rent out individual rooms, not entire apartments

•Tired of the office? Microsoft builds treehouses 

New Measurement standard from BOMA

•Moody's weighs in on best locations for Amazon's newest office

 Wall Street 

What does AI mean for Wall Street?

Reprieve for Wall Street firms from European rules governing investment research?

•As banks build out their own robo-advisers, funding falls for startups

Traders vs. Bots moves to the corporate bond market

•10 years post-crisis: Wall Street pay down 52% in real terms


•Why streetwear brand Supreme is worth $1B, and Abercrombie Isn’t; also, the $850 sneaker


'Future city' to be built in Canada by Alphabet company; also, New ‘Smart City’ hatches solutions to India’s urban chaos

•Canada imposes tougher mortgage rules effective 2018 

 Asia/Middle East

Housing should be for living in, not for speculation

•Goldman bulks up its Japan REIT despite dwindling property yields

Qatar’s wealth fund brings $20bn home to ease impact of embargos


•UK jobless rate at 42-year low amid strong labor demand

European landlords with 700,000 homes explore JVs

Real estate investors shun Brexit Britain

ECB set for longer, slower taper to keep a lid on euro

•Q3 surprise loss for Europe’s largest online retailer


Bitcoin just had its biggest drop in a month; also, Manhattan developer now accepting Bitcoin for real estate

What Trends Do Bank Earnings Reveal?

  • Mixed trends in headcount growth
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  • Compensation is up across the board with the exception of Goldman and JPMorgan—both of whom saw an increase in headcount. Comp is up at Citi, despite a 3% reduction in staff.
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  • Occupancy expenses continue to fall, with the exception of JPMorgan and Wells. Goldman Sachs and Morgan Stanley added staff, but still managed to trim occupancy expense.
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  • Which expenses continue to rise? Technology spending, including expenditures on IT and communications equipment. Citi, JPMorgan, Goldman and Morgan Stanley all spent more on technology than on occupancy during Q3 2017.
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Note: Wells’ comment on CRE lending, which was down $2.6B vs. Q2 2016, whereas Bank of America’s CRE loans were up fractionally on the quarter.

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