Leaving the urban states…benefits with a catch and more!
Tapping the suburbs: After years of operating in huge corporate buildings located in America’s hottest cities, companies may start relocating to the suburbs, reports Market Crumbs. Some of these moves are being accelerated due to the coronavirus.
As per CBRE, nine of the ten largest office markets in the country saw increases to vacancy rates in Q1. “You’re definitely seeing more tenants coming out of the city looking for suburban space,” chairman of Americas research at CBRE Spencer Levy said. “But let’s be clear about what they’re looking for. Smaller space … and shorter-term space.”
Too good to be true: Facebook announced Thursday that it will allow many staff members to permanently transition to remote work, but they may face a reduction in their “big Silicon Valley” salaries, reports New York Times.
The tech giant’s decision marks a striking change for a business culture that is built around “physical space.” If other tech companies follow suit, expensive hubs like Silicon Valley, Seattle and New York may find a shifting trend with major companies “going remote.”
Robinhood investor trends: Retail investors are riding the stock market waves higher and higher. This trend has caught the attention of many Wall Street experts who are of differing views as to whether these “Robinhood” investors are fueling the rally or not.
“The global pandemic brought retail investors back into the equity market after being largely absent for a decade,” Deutsche Bank strategist Binky Chadha wrote. “They were important buyers of the correction in equities.” Read more of the story by Yahoo Finance.
Advantageous circumstances for home-buyers: With stocks declining, home buyers have something to rejoice about as mortgage rates continue to hit all time lows. However, lack of inventory is causing sale prices to skyrocket as home owners are reluctant to sell during the pandemic. Banks are also hesitant to lend amidst the economic uncertainty.
Despite these obstacles, deals are being secured and the Mortgage Bankers Association Purchase Index for the week ending on June 5 was up 13% from the same week last year, reports Barron’s. Taylor Morrison Home, whose sales declined 30% in April reported an increase of 17% in May.