Propmodo Daily

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Here is what is happening in the world of real estate today.

Inflation numbers have been dropping steadily due to the economic slowdown caused by high interest rates. Many are wondering how low inflation needs to go before the Federal Reserve decides to dial back its historic rate hikes. As we approach our two percent yearly inflation target, there is hope that the U.S. Federal Reserve will start lowering rates.

A look at the rest of the world suggests that the Fed might not be willing to do so until inflation is well within “acceptable” levels. The U.K. has decided to keep its rates steady even though its inflation has dropped below its target for the first time in three years. Some countries, like Switzerland, are starting to lower rates, but unlike most countries, it only has a yearly inflation rate of 1.4 percent. The Fed might follow this strategy and wait until inflation is well below their target before lowering rates. According to most predictions, this wouldn’t happen until 2025.

Cushman and Wakefield have released their mid-year outlook, revealing some interesting stats about the office market. They use the term “trifurcation” to describe the phenomenon where the top-performing office buildings are seeing very low vacancies, while the bottom-performing ones are increasingly empty.

Data centers have evolved from niche IT infrastructure to a prime real estate investment, driven by the rising demand for cloud storage and processing power. Major tech companies like Nvidia, now the world's biggest public company, are fueling this trend with significant investments and innovations. These include advanced cooling systems and alternative power sources like nuclear energy. Our new article discusses how the expansion of data centers promises substantial returns for investors but requires advancements in energy efficiency and sustainability.

If you haven’t already please sign up for our next Propmodo Live webinar on July 9th about multifamily leasing strategies where we will talk to experts from JLL, Defigo, and Veritas about how they plan to attract and retain residents in the changing multifamily landscape.

Also, this week our technology section is focused on site selection. We have articles about overcoming environmental, zoning, and infrastructure problems, Ottawa’s digital twin for redevelopment planning, and how tech can help find and fix contaminated properties.

Real Estate

The Data Center Boom Is Powering New Construction and Design Innovations

Data centers have transformed from niche IT infrastructure to a prime investment opportunity in real estate, driven by increasing demand for cloud storage and processing power. Major tech companies like Nvidia are fueling this trend, with significant investments and innovations to meet the growing energy needs, including advanced cooling systems and alternative power sources like nuclear energy. As data centers expand, they promise substantial returns for investors and necessitate advancements in energy efficiency and sustainability.

More News

Insider Insights

⚖️ CounterweIght: After the Chinese government enacted reforms to help cool its overheating real estate industry but now, faced with tanking investor confidence, the country is trying to find ways to support the sector from further value loss.

♿️ Unaccessible: Home builder Toll Brothers is being sued by the Attorney General of the Southern District of New York for its role in the construction and design of buildings that are not property accessible for people with disabilities.

Overheard

Propmodo Technology: Site Selection

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Propmodo Daily is written and edited by Franco Faraudo with contributions from readers like you and the Propmodo team.

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