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In this issue of ACWI Advance we take a closer look at these stories:
- Demand for warehouse space is expected to cool a litttle next year, says CBRE.
- Prologis’ believes industrial real estate growth will be more sustainable.
- As talks stall, a freight railroad strike turns out to be a very real prospect.
- Higher food prices are believed to be behind a drop in general merchandise sales.
- The supply chain crisis kicked off a revolution in transportation management.
- Employers cannot discriminate against employees based on military service.
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CBRE’s Industrial Occupier Survey found that 64% overall and 81% of third-party logistics companies responding plan to expand their real estate footprint over the course of the next three years, in spite of economic uncertainty.
“The average age of a U.S. warehouse building is 43 years, and 28% are more than 50 years old,” the company points out. “Given the continued growth of ecommerce and retailer omnichannel offerings, warehouses approaching obsolescence in these markets will present opportunities for redevelopment, particularly in infill locations that support last-mile delivery.”
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Developers continued to break ground, even with capital markets in flux. Commitments made earlier in the year and, in some cases, ownership of lower cost-basis land spurred more development.
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Representatives of management and the unions are scheduled to return to the bargaining table on Dec. 4 to try to work out a new agreement with the help of federal mediators. In the meantime, the union leadership has promised that their members will not strike until after that date.
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“The growing weekly grocery costs and monthly credit card bills have begun to chip away at discretionary purchases,” said Marshal Cohen, chief retail industry advisor for NPD. “Consumers can only absorb climbing expenses for so long before they begin to reassess their spending capacity.”
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Transportation is at an inflection point, as massive shifts like nearshoring bear down on it, Deloitte says. “Nearshoring efforts are underway across a significant number of industries as companies strive to shorten and bolster supply chains.”
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The USERRA prohibits employment discrimination based on past, present, or prospective military service and generally requires employers to reemploy servicemembers upon their return from uniformed service.
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