—— U.S. Jobs “Smash” Forecasts in May; Meta Mandates 3 Office Days; Swire Plans $1B Miami Towers; China Drafts New Property Policies; Apple to Refurbish 53 Stores; Amazon May Launch Free Wireless Plan; NYC Multifamily Property Snapshot
1. U.S. Jobs “Smash” Forecasts in May
In May, the U.S. added a total of 339,000 non-farm jobs, a stunning figure that far exceeded economists’ forecast of 195,000. The unemployment rate rose from 3.4% to 3.7%.
Following the data release, the yield on 2-year U.S. Treasuries surged above 4.4%. Current market pricing shows investors expect the Fed may raise rates by 23 basis points in June.
Most Federal Reserve officials, especially Chair Jerome Powell, have suggested a pause in rate hikes could give policies more time to work and allow for better economic analysis. But after May’s strong job numbers, opposition to rate hikes may become harder to justify.
Non-farm payrolls have now increased for 14 consecutive months. May’s actual figure easily surpassed even the most optimistic estimate of 250,000, underscoring how resilient the labor market remains.
With no signs of weakness in the U.S. job market, it will be difficult for the Fed to pause rate hikes.
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2. Meta Mandates 3 Office Days per Week
Sources say that starting in September, Meta Platforms will require employees to work in the office at least three days per week in an effort to boost productivity.
The company began implementing a 10,000-person layoff plan in March, which remains ongoing and has significantly impacted workflow.
A Meta spokesperson stated that the company believes employees can contribute meaningfully both at home and in the office, but it aims to encourage collaboration, relationship-building, and culture.
In March, CEO Mark Zuckerberg cited a study showing that engineers who work with colleagues face-to-face three days a week tend to be more productive.
Meta employees say morale is low amid ongoing layoffs and future uncertainty.
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3. Swire Plans $1 Billion Miami Towers
Swire Properties plans to invest $1 billion to build two towers on the southern tip of the man-made Brickell Key island in Miami. The project is named One Island Drive.
A 244-meter-tall tower will include 222 condominium units and two penthouse residences. Sales will begin at the end of this year, with two-bedroom condos starting at $3.5 million.
The second, slightly smaller tower will become a Mandarin Oriental hotel, offering 151 rooms, 28 hotel residences, and 61 private residences. The existing Mandarin Oriental at the site will be demolished in early 2025.
Chairman Henry Bott said in an interview that this site is the last available parcel for development on Brickell Key.
The new project is within walking distance of Swire’s other properties, including the $1 billion Brickell City Centre.
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4. China Drafts New Property Policies
According to insiders, China’s government is working on a set of new policies aimed at revitalizing the property sector, after previous measures failed to generate a substantial recovery.
Reportedly, the government is considering lowering minimum down payments for homes outside city cores, cutting brokerage fees, and further easing home purchase restrictions.
After the news broke, the renminbi appreciated 0.5% against the U.S. dollar, marking its largest gain in two months. Prices for key construction materials like copper and iron also continued to rise.
Although China’s real estate sector has avoided a full-blown crisis, it remains a drag on the broader economy.
Previously, the Chinese government allocated $28 billion in special debt to ensure stalled projects are completed promptly.
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5. Apple to Refurbish 53 Retail Stores
Sources reveal that Apple is planning to reinvigorate its retail operations, with plans to open 15 new stores in the Asia-Pacific region by 2027.
Additionally, the company will renovate or relocate six stores in Asia. Over the next four years, Apple plans to open, relocate, or refurbish a total of 53 stores.
Apple’s retail stores, now in their 22nd year, have faced challenges from the pandemic, customer service issues, and employee dissatisfaction. The company aims to build its brand further in India and other emerging markets while enhancing the consumer experience in the U.S. and Europe.
By the end of this year, Apple will open a new store in Wenzhou and upgrade its flagship store in Shanghai.
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6. Amazon May Launch Free Wireless Plan
Amazon is reportedly in talks with carriers including Verizon, T-Mobile, and Dish Network to secure the lowest possible wholesale rates.
The company hopes to offer Prime members mobile service plans for $10 a month—or even free—as a way to boost membership experience and loyalty.
Sources say talks have been ongoing for 6 to 8 weeks. AT&T was also involved at one point, but the plan could still take months to implement—or be scrapped altogether.
Prime members currently pay $139 annually for benefits such as free shipping, video streaming, and access to over 100 million songs.
Amazon continues to add perks to Prime membership to enhance its value.
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7. NYC Multifamily Property Snapshot
According to real estate firm Douglas Elliman, in March the average Manhattan apartment rent rose 10.3% year-over-year to $5,115, while vacancy rates fell below 3%.
In Q1 this year, the number of multifamily transactions declined 35% year-over-year to 268 deals, and total transaction volume dropped 39% to $2.11 billion.
Real estate firm Ariel noted that it continues to seek quality lending opportunities. Although banks have tightened lending standards, they’re still searching for deals amid a high-rate environment.
However, lenders are increasingly avoiding Class B and C office buildings. Additionally, rent-stabilized apartments are struggling to secure financing due to fixed income and rising costs squeezing cash flow.
Banks have raised lending standards but are still seeking good opportunities.
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This content is sourced from Financial Times, Bloomberg, and The Real Deal, among other financial news outlets.