An expected recession seems unlikely. What other predictions went awry?
We’ve now eclipsed six and one-half months of 2023. Wow! That was speedy.
After all, we are in earnings season as our big employers report progress. So I’ll pretend to be a big employer and report mine.In January of this year, I wrote about industrial real estate, predicting third-party logistics providers would give back space. But there’s a bigger issue at hand as many 3PLs signed term leases that still have time to go. Therefore, look for much of this excess to enter the market as sublease space.
Now, couple that with core inflation, which has declined for several months. Finally, retailers are shedding inventory as mentioned above. In fact, this is deflationary as things are on sale. Now some might counter by saying we’ve not felt the full impact of the Fed rate increases, folks are spending that idle cash left over from the pandemic, and massive layoffs await. We’ll see.
Fortunately, our team spent the previous few months figuring out how to duplicate our desktop mobility. Did we have some insider scoop? No. We just wanted the flexibility to do stuff in a client’s lobby, our dining room or the front seat of our car without losing productivity.
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