Two U.S. Government Agencies Insist Workers Return to the Office

The Department of Transportation and the FAA tell government teleworkers to boost in-person work.

The demands for employees to make an in-office appearance continue, this time from the federal government.

It’s a common refrain as the working world in some industries tries to move from pandemic conditions, calling for and even requiring workers to come to the office three or four days per week.

Officials from the U.S. Federal Aviation Administration and U.S. Transportation Department, including Transportation Secretary Pete Buttigieg told department employees in a video “We need to be around each other in person more than we are now to ensure this department’s long-term success.”

The department said in an email to employees it expects teleworking employees to report in person to their official duty location a minimum of three days every two weeks starting Sept. 10 and a minimum of four days per pay period starting Dec. 3, according to a Reuters report.

“We understand this will be a big transition for some, and there will certainly be an adjustment period. We commit to providing as much support as possible to employees as they navigate this change,” USDOT said in an employee email.

The FAA said it expects agency employees who are regularly teleworking to be in offices at least three days per week. The agency said in an email seen by Reuters it expects employees working remotely as of Oct. 9 to increase in-office presence to at least three days per week.

Government office space use has been an issue for years – including well before the pandemic – as agencies struggle to determine how much space they need. GlobeSt.com reported last week on a GAO recent report that indicated that only 25% of federal office space or less is being used in 17 of 24 agency buildings.

But it has been heating up since the end of the pandemic.

In February, the House passed legislation to mandate federal agencies to reinstate 2019 pre-pandemic telework policies and require telework expansions be certified by the Office of Personnel Management about their effectiveness.

In April, the White House Office of Management and Budget in a memo first reported by Reuters asked federal agencies to revise workforce plans as it aims to “substantially increase meaningful in-person work in federal offices.”

The private sector has grappled with return-to-office policies for several years, including at tech firms such as Google. The past few Labor Days have been “promised” as dates when workers would be returning to office more frequently, if not, by mandate.

Their decisions often are judged based on whether workers or companies have more leverage in employment.

Original: https://www.globest.com/2023/07/24/two-u-s-government-agencies-insist-workers-return-to-the-office/?kw=Two%20U.S.%20Government%20Agencies%20Insist%20Workers%20Return%20to%20the%20Office&utm_source=email&utm_medium=enl&utm_campaign=multifamilyalert&utm_content=20230724&utm_term=rem&oly_enc_id=1683H5280356J4F

CBRE Survey: Seniors Housing Sector Remains Resilient

Over 75% of investors expect rental rate increases for most of the sector’s asset classes.

Despite rising interest rates and a tough lending environment, the seniors housing sector is expected to see rental rate increases this year, according to a new survey from CBRE.

Findings from the survey showed that over three-quarters of investors anticipate rental rate increases of 3% or more across most housing classes for seniors, except for skilled nursing, over the next 12 months. These increases are being attributed to rising development and inflation-driven operating costs.

According to the survey, the assisted-living class is expected to see the greatest increase in rental rates, with 28% of investors forecasting rent growth above 7% over the next 12 months—this is up from 15% of investors last year. No rental decreases are expected for any of the sector’s asset classes.

The biggest investment opportunity in the sector this year, according to 37% of survey respondents, is active adult due to younger baby boomers entering their retirement years. Assisted living at 29% and independent living at 13% follow as the next most popular investment opportunities.

A significant change from last year’s survey, 50% of respondents said they expect cap rates to increase this year compared with only 27% of respondents in 2022.

“Although there are challenges, many investors still consider seniors housing to be an attractive asset class with rental rates trending upward due to the need-based demand and constraints on future supply,” said Daniel Lincoln, leader of Seniors Housing and Healthcare for CBRE’s Valuation & Advisory Services. “Sustained higher interest rates have made it difficult to finance deals, and other challenges, such as staffing shortages, are expected to persist throughout the remainder of the year.”

Original Post: https://www.multifamilyexecutive.com/business-finance/business-trends/cbre-survey-seniors-housing-sector-remains-resilient_o?utm_source=newsletter&utm_content=Article&utm_medium=email&utm_campaign=MFE_072023&&oly_enc_id=6355B1959723E1A

The Yield Curves Are Still Inverted. Are We Having a Recession or Not?

However, the spread is still deep and seen as a sign of a coming recession.

It was a year ago on July 6 that the 2-year to 10-year Treasury yield curve inverted, which would typically be taken as a sign of a coming recession even if around for a much shorter time. But Monday, July 3, brought an additional portent, as the 108-basis point difference hit the widest gap since a 109.5 percentage point difference one day in 1981, as Reuters reported.

Those old enough to have been in business at the time might remember the massive inflation and the federal funds rate eventually nearing 20%.

Things have not reached that point yet today, although it is worth noting that on June 14, 2023, when the Federal Reserve announced a pause in the long run of rate hikes it had pursued, the 2-and-10-year gap jumped to 0.91, still a wider gap than has been seen since the inversion started last year.

It could be this will become one of the rare times that an inversion over a significant amount of time will not accurately predict a recession within a year or two. But there is so much other information suggesting that the economy could be in for a bad turn. Here are some of the points to consider:

• The Fed is worried enough that Fed Chair Jerome Powell has publicly said the agency expects two more rate hikes this year.
• The Office of the Comptroller of the Currency; the Treasury; Federal Deposit Insurance Corporation; and National Credit Union Administration published a final rule on CRE loan modifications and workouts, which is saying that they expect trouble.
• Fed researchers working on a new index to better understand the economy noted that financial conditions were tighter than any other time since the Global Financial Crisis.

Other central banks have also shown a hawkish visage to their economies. There has been general concern that inflation needed to be reversed and that pushing on tight monetary policies would do the job. There are economists who say triggering the problem were supply chain implosions since the start of the pandemic and that, even if better now, they have continued to keep inflation at elevated levels. Then again, labor markets are tight because there is an historical imbalance of the amount of hiring corporations want to do and the number of people available to do any jobs, let alone considering whether they have the skills most in demand.

At this point, a recession seems most likely, though exactly when and how severe are up for a guess.

Original Article: https://www.globest.com/2023/07/06/the-yield-curves-are-still-inverted-are-we-having-a-recession-or-not/?kw=The%20Yield%20Curves%20Are%20Still%20Inverted.%20Are%20We%20Having%20a%20Recession%20or%20Not?&utm_source=email&utm_medium=enl&utm_campaign=multifamilyalert&utm_content=20230706&utm_term=rem&oly_enc_id=1683H5280356J4F