Welcome toThe National Observer,a roundup of top business news and actionable insights from acrossThe Business Journals. We'll examine Gen Z's new pay problem, a banking titan's planned 165-branch expansion, and a deal that has a large motel chain being acquired. First, we're looking at what a recent wave of retail bankruptcies means for the commercial real estate sector.
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What retail bankruptcies mean for commercial real estate
A spate of retail bankruptcies hasopened up vacancy in shopping centers and malls across America. In some markets and centers, a retailer's store closures have been backfilled quickly and ata higher lease ratethan what the previous occupant was paying. But in other places, a less positive story may be playing out, reports Ashley Fahey ofThe Business Journals.
LOCATION:Space in prime locations is in short supply right now, so vacancies created by closed Bed Bath and Beyond locations — which anchored manydesirable shopping centers in hot or growing markets— tend to be easier to fill than, say, those created by Big Lots Inc.'s bankruptcy. Big Lots is a discount retailer, which means the sites it leaves aren't necessarily in top-tier, Class A centers.
DEBT:While most landlords losing a Big Lots store or a site from another retailer that's closing stores en masse are likely to be focused initially on re-leasing that space, it's also possible the closures ultimately will have an impact on the loans backing those properties. About 10.92% of commercial mortgage-backed securities backed by retail property have a special servicer assigned because the borrower is struggling to keep current on payments. That's above the overall CMBS special-servicing rate of 8.46%.
FULL STORY:What Chapter 11 bankruptcy filings by retailers will mean for commercial real estate
There's a disconnect with Gen Z on pay
Generation Z workers aren’t satisfied working fora salary they don't believe represents what they’re worth, reports Marq Burnett ofThe Playbook.
SURVEY SAYS:About87% of full-time Gen Z workers feel they are underpaid, according to a new survey of 750 workers ages 18 to 27 by ResumeTemplates. The findings come at a time when housing prices and daily expenses have seen marked increases, with salaries for many workers struggling to keep up with soaring prices. Of those surveyed, 60% said they are unable to afford their basic needs on their current salary.
PAY RATES:Among the nearly 9 in 10 Gen Z workers who believe they’re underpaid, the majority of respondents reported earning less than $60,000 annually, with 33% earning under $30,000.
OVERHEARD:“Given high inflation over the last few years, I would imagine that some Gen Zers feel underpaid because they are struggling to pay bills or maintain the lifestyle they had just a few years ago,” said Julia Toothacre, ResumeTemplates’ chief career strategist.
FULL STORY:There's a disconnect with Gen Z on pay.
Bank of America planning expansion in 63 markets
Bank of America Corp.plans to open more than 165 branches across 63 markets by the end of 2026, including establishing its first branches in new markets, reports Symone Graham of theCharlotte Business Journal.
TIMELINE:Charlotte, North Carolina-based BofA expects 40 of those branches to open by the end of this year. The newly planned financial centers are in addition to more than 100 branches the bank opened nationally over the last two years.
NEW MARKETS:Last year,Bank of America announced plans of expanding into nine new marketsby 2026. That included Boise and Louisville, as well as Omaha, Nebraska; Birmingham, Alabama; Madison, Wisconsin; New Orleans; Milwaukee; Dayton, Ohio; and Huntsville, Alabama.
FULL STORY:Bank of America to open more than 165 branches by end of 2026
Is the job market already taking another turn?
Wage growth seems to havestabilized and started to tick back upward, reports Andy Medici ofThe Business Journals.
BY THE NUMBERS:Wage growth suffered a steep drop from more than 9% in 2022 to a 3.1% low in May 2024, according to Indeed Hiring Lab's three-month moving average of advertised pay. That number has stopped sliding, however, reaching 3.3% in August.
COUNTERPOINT:Compensation firm Mercer also found pay budgets holding steady into 2025, but Lauren Mason — the company's US Workforce Solutions Leader — said the lack of movement is due to uncertainty, and that historical trends suggest another decline may be coming.
EMPLOYMENT:There's no question the job market has shifted in recent months. The nation's unemployment ratecame in at 4.2% for August, according to theBureau of Labor Statistics. While that's down from 4.3% in July, it's up from 3.4% in January 2023 and surpasses the 3.5% rate posted in February 2020, before the onset of the pandemic.
FULL STORY:The hiring market is taking a turn — and salaries are already moving
