{"id":25688,"date":"2019-06-03T17:04:33","date_gmt":"2019-06-03T21:04:33","guid":{"rendered":"https:\/\/qa.bluevaultpartners.com\/?post_type=sponsor-article&#038;p=25688"},"modified":"2019-06-05T08:42:09","modified_gmt":"2019-06-05T12:42:09","slug":"how-co-working-labor-costs-and-ma-may-impact-real-estate-investing","status":"publish","type":"post","link":"https:\/\/qa.bluevaultpartners.com\/how-co-working-labor-costs-and-ma-may-impact-real-estate-investing\/","title":{"rendered":"How Co-working, Labor Costs, and M&#038;A May Impact Real Estate Investing"},"content":{"rendered":"<h1>How Co-working, Labor Costs, and M&amp;A May Impact Real Estate Investing<\/h1>\n<p>Ethereal drivers like the government and politics seem to have a stranglehold on the media optics of real estate investing: the polarization of D.C., while creating volatility and opportunity, continue to drive eyes and form sentiment. Yet, we believe three less obvious factors may help investors extract value.<\/p>\n<ol>\n<li>Labor costs: retail will feel the biggest burden<\/li>\n<li>Co-working: replacing white collar with tech vibes will lead to re-pricing of risk<\/li>\n<li>Real estate M&amp;A: investors are looking for public market to correct first<\/li>\n<\/ol>\n<h4><strong>Rising labor costs will have the biggest impact on retail<\/strong><\/h4>\n<p>As if the retail market needs more bad news, rising labor costs will likely cut into an already low-margin business. Traditional brick-and-mortar retail is labor-dependent \u2013 you need to pay employees to work the floor and drive sales. Increasing wage inflation stemming from a tight labor market may cut into retail REIT stocks\u2019 cash flows, hurting values. While one could argue that rising wages puts more money into consumers\u2019 pockets for retail purchases, the \u201cshare of wallet\u201d continues to shift to experiential retail.<\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: left;\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-medium\" src=\"https:\/\/qa.bluevaultpartners.com\/download\/sponsor_corner\/RRE-PNT-008-Z01_chart-02_v01.jpg\" width=\"940\" height=\"492\" \/><\/p>\n<p>&nbsp;<\/p>\n<p><span style=\"font-size: 8pt;\">Bloomberg. FTSE NAREIT Retail Property Sector Total Return Index (Retail REITs); Employment Cost Index: Wages and Salaries \u2013 Private Industry Workers, Percent Change From Year Ago, Quarterly. SA. 12\/31\/13-12\/31\/18. <strong>Past performance is\u00a0not indicative of future results. You cannot invest directly in an index.<\/strong><\/span><\/p>\n<p>With wages going up, investors should look at sectors with minimal manpower costs. It only takes a few people to work concession and run a projector at movie theaters, while apartments require just a small staff and maintenance crew. And we don\u2019t add labor costs to the risks facing office investments. Once a building is up, a doorman and a few maintenance workers may be all a landlord needs.<\/p>\n<p>&nbsp;<\/p>\n<p><span style=\"font-size: 14pt;\"><a href=\"https:\/\/www.resourcealts.com\/insight\/co-working-labor-costs-mergers-acquisitions-real-estate-investing\/?utm_source=BlueVault&amp;utm_medium=website&amp;utm_campaign=sponsor_spotlight&amp;utm_content=coworking\">Click here to read about the impact of co-working and M&amp;A.<\/a><\/span><\/p>\n<p>&nbsp;<\/p>\n<p><em><span style=\"font-size: 10pt;\">Resource Securities LLC, Member FINRA\/SIPC.<\/span><\/em><\/p>\n<p><em><span style=\"font-size: 10pt;\">The information contained herein is intended to be used for educational purposes only and does not constitute an offer to sell or a solicitation to purchase securities. Such offers or solicitations can only be made by means of a prospectus. Prior to making any investment decision, you should read the applicable prospectus carefully and consider the risks, charges, expenses and other important information described therein. The value of your investments may decline, and you could lose some or all of your investment. The prospectus can be obtained by contacting your financial advisor or by visiting our website at www.ResourceAlts.com.<\/span><\/em><\/p>\n<p><em><span style=\"font-size: 10pt;\">Resource has two interval funds that are distributed by ALPS Distributors, Inc. (ALPS Distributors, Inc. 1290 Broadway, Suite 1100, Denver, CO 80203). Resource Real Estate, LLC, Resource Alternative Advisor, LLC, their affiliates, and ALPS Distributors, Inc. are not affiliated.<\/span><\/em><\/p>\n<div style=\"clear:both;\"><\/div>","protected":false},"excerpt":{"rendered":"<p>Ethereal drivers like the government and politics seem to have a stranglehold on the media optics of real estate investing: the polarization of D.C., while creating volatility and opportunity, continue to drive eyes and form sentiment&#8230; <\/p>\n","protected":false},"author":2,"featured_media":25810,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_et_pb_use_builder":"","_et_pb_old_content":"","_et_gb_content_width":"","footnotes":""},"categories":[3009],"tags":[],"class_list":["post-25688","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-asset-manager-perspectives"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v23.4 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>How Co-working, Labor Costs, and M&amp;A May Impact Real Estate Investing - 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