Real Estate

A Brooklyn developer just leased 25% faster than 7 competing projects in a 3-block radius. Rents 10-20% above market. With 18 more lease-ups in the pipeline, many backed by institutional developers with bigger budgets and stronger brands. The edge wasn't location or capital, but a design-oriented focus on the drivers of real rent premiums. Fve lessons from Charney Companies' development at Union Channel in Brooklyn, New York: 1/ Unit mix. Pulled architectural plans for every competing project in the market. 3-bedrooms were 3% of supply but demand pointed to 14%. Union Channel tripled the market average. They were the first unit type to fully lease. 2/ Studios. Market average was 500 sqft at $3,500/month. Too much space, too much rent. Union Channel built 400 sqft studios — 20% smaller, 10% cheaper. Leased 50% faster than the rest of the building. 3/ Living rooms. Of every layout variable tested across hundreds of units, living room width was the single strongest predictor of rent per sqft. Every other layout decision was calibrated to protect it. 4/ Amenities. Conventional wisdom says more amenities = more value. The data says the opposite. Quality of select amenities beats breadth. Fitness center quality had the strongest correlation with rent per sqft. They hired a gym consultant instead of designing in-house. 5/ Marketing. 20% of leases came directly from social media — 4x the rate on prior projects. Strategy built around the neighborhood, not the building. Murals on construction fencing. 3,000 organic Instagram followers before opening. These five decisions account for 73% of the value created at Union Channel. All made before the building opened. The data exists in every market. Most developers just aren't looking. Full case study from Andrew Steiker-Epstein in this week's Thesis Driven newsletter. Link in comments.

Every time a card payment is processed, 𝘁𝗵𝗿𝗲𝗲 main types of fees are involved. Here’s a simple breakdown of the Three Core Fees: 1️⃣ Interchange Fee This is paid by your acquiring bank (or payment processor) to the cardholder’s bank (the issuer). It’s set by the card networks (like Visa and Mastercard; sometimes regulated), and is designed to cover things like fraud, credit losses, and infrastructure costs. 2️⃣ Scheme Fee Charged by the card networks themselves, this fee covers the operation of the payment system (“rails” that process the transaction). 3️⃣ Acquirer Markup This is the fee your acquirer or payment service provider (PSP) charges you, the merchant. It includes their costs, risk management, and profit margin for processing and settling the payment. The total cost a merchant pays is called the Merchant Service Charge, which is the sum of these three components. The Main Pricing Models: ► Bundled Pricing All fees are grouped into one flat rate. This is very common with small businesses. It’s easy to understand but doesn’t provide insight into what you’re actually paying for. ► Interchange+ The interchange fee and the acquirer’s fee are shown separately, but the scheme fee is typically bundled with the markup. This model offers some transparency. ► Interchange++ Each fee—the interchange, scheme, and acquirer markup—is itemized separately. This is the most transparent model and is favored by larger or multi-country merchants who want to track costs precisely. Who Chooses the Pricing Model? Most acquirers and PSPs decide what pricing model you’re offered. Unless you negotiate or have significant transaction volume, you’re likely to get bundled pricing by default. Larger or more experienced merchants who understand payments often push for Interchange++ for its clarity and fairness. Smaller merchants often aren’t aware that alternatives exist or find it difficult to compare offers. How Interchange Fees Vary Globally: Some regions (like the EU, UK, China, and Brazil) cap interchange fees to lower costs for merchants and stimulate competition. The US regulates only part of the system—such as capping debit card fees for large banks (the Durbin Amendment)—while credit card interchange remains uncapped and usually higher. Other countries, like India and Brazil, regulate interchange as part of broader financial inclusion goals. In markets with stricter regulation, merchants often benefit from lower, more predictable fees, making it easier to accept cards. Where fees are higher and less regulated, issuers can offer consumers more rewards (like cashback), but those costs are passed back to merchants—and sometimes their customers. Every model shifts the balance of costs and benefits between banks, merchants, and consumers in different ways. More info below👇, and I highly recommend reading my complete deep dive article about Interchange Fee and what factors impact the rate: https://bit.ly/44T4VJA

Investing ₹20 lakhs in an under-construction flat in Hyderabad could have made you ₹1 crore in 4 years. No, this isn’t a clickbait ad. It’s an actual deal that early buyers in a project I visited just exited from. ⸻ Last week, I flew to Hyderabad to meet Ajitesh Korupolu, founder of ASBL — a developer who’s building over 10,000 homes and scaled to ₹6,000 Cr in sales. I wanted to learn what real estate investors really do to make 2X, 3X, even 5X returns — and how everyday folks can do it too. Here are the 5 Things Nobody Tells You About Real Estate Investing in India: 1. Timing beats location. Buying during “excavation stage” (literally when the builder starts digging) gives the highest upside. In the project I saw: ₹1.2 Cr (early stage) → ₹2.2 Cr (ready to move in) That’s ₹1 Cr appreciation in 4 years. 2. Leverage is your friend — if you understand it. With just ₹20L down, buyers took home ₹1 Cr net after selling. Why? Because construction-linked loans mean you pay EMI only as the building goes up. 3. Ready-to-move-in = ready-to-trap-yourself. If you’re buying to invest, stop chasing finished flats. Capital is locked, returns are capped, rental yields are 2–3%. 4. Risk isn’t in the property. It’s in the builder. 30% of under-construction projects still face delays. Do this before investing: → Study builder’s past projects → Compare scale continuity → Understand their financing cycle 5. Hyderabad is exploding — for real. Amazon, Google, Apple are setting up their second-largest global HQs here. Tech jobs → housing demand → appreciation cycle → investor opportunity. ⸻ Real estate isn’t slow money. If you play it like the pros, it’s high-leverage, high-upside, timed risk. And I’m going to keep learning, testing, and sharing every play. Watch the full episode to learn it all. I'm adding the link in the comments. #rentvsbuy #realestate #investinginahome #hyderabad

What’s going on in Atlanta? It’s been one of the softness rental markets in the country both for apartments and single-family rentals. New lease apartment rents (trade-out) fell 5.7% in Q3 – third-lowest in country behind Austin and Jacksonville. Renewal rents grew just 2.7% -- also third-lowest in country, according to RealPage data. Its occupancy rate, 92.6%, is also one of the nation’s weakest. For SFR, it was only modestly better, with rents up 0.9% -- comparable with a few peers, but still well below the U.S. average of 3.4%, according to John Burns data. While Atlanta is building a lot of new apartments and BTR, it’s not as much (adjusting for size) as better-performing Sun Belt markets like Dallas, Orlando and Charlotte. So it’s NOT just a supply issue. What’s going on? Couple things: 1) Lingering leasing fraud issues No secret here. Atlanta ranked as the No. 1 market for leasing fraud in a recent NMHC survey. Added complication: Atlanta’s court systems moved infamously slow – even for cases of obvious criminal fraud. More operators are now using smarter screening technology and the judicial process is improving a bit – particularly with a new law allowing property managers to contract out off-duty officers to assist in evictions. It'll keep improving, but Atlanta isn’t out of the water. Rental delinquency remains more elevated here relative to most of the country east of Los Angeles and Oakland. As the courts catch up, that creates more unit availability again … but only after operators complete the very expensive process of processing evictions and then prepping units often left in bad shape. 2) Solid, but-not-as-robust job growth Over the last 5 years, a period that includes the COVID-era recession, Atlanta’s job base has grown by 7.9%. That’s very solid relative to most of the country EXCEPT not compared to other major Sun Belt markets with high supply pressures. Over that same period, employment grew by 14.5% in Dallas, 13.5% in Raleigh, 12.3% in Tampa and by around 11% in Charlotte, Orlando and Nashville. Solid-but-unspectacular job growth translates to a significantly slower absorption rate in Atlanta (while still quite solid) relative to its Sun Belt peers. In other words: While Atlanta has less supply (by Sun Belt standards), it also has less demand -- so the gap is wider. That’s why fundamentals are holding up better (though still impacted) in other Sun Belt markets despite bigger supply numbers. It's also true, to a lesser degree, in the SFR market -- given significant growth in the number of professionally managed SFR units (including BTR) across metro Atlanta. Longer term? Atlanta will regain its footing. It's still a jobs magnet and its size/scale give it some advantages over smaller competitors. But it'd probably also be fair to view Atlanta (given its relative maturity + increased competition it didn't have in early 2000s and before) as a slower-growth market long term relative to others in the Sun Belt.

Every card payment involves three core fees - yet most merchants don’t know where their money goes. Here is a break-down. 𝗧𝗵𝗲 𝟯 𝗳𝗲𝗲 𝘁𝘆𝗽𝗲𝘀: 1. Interchange – Paid from the acquirer to the issuer (the cardholder’s bank). Set by card networks, often regulated, and meant to cover fraud, credit risk, and infrastructure. 2. Scheme Fee – Charged by the card networks (Visa, Mastercard, etc.) for operating the rails. 3. Acquirer Markup – What the acquiring bank or PSP charges the merchant to process the transaction, handle risk, and settle funds. Together, these form the Merchant Service Charge. 𝗧𝗵𝗲 𝟯 𝗽𝗿𝗶𝗰𝗶𝗻𝗴 𝗺𝗼𝗱𝗲𝗹𝘀: 1. Bundled: All three fees are merged into one opaque rate. Common among smaller merchants. Simple, but lacks visibility. 2. Interchange+: Interchange and acquirer fee shown; scheme fee included in the markup. Partial transparency. 3. Interchange++: All three fees itemized. Full transparency. Preferred by larger or multi-market merchants. 𝗪𝗵𝗼 𝗱𝗲𝗰𝗶𝗱𝗲𝘀 𝘁𝗵𝗲 𝗺𝗼𝗱𝗲𝗹? - The acquirer or PSP typically offers the pricing model, and unless a merchant has the volume or experience to negotiate, they’re often placed on bundled pricing by default. - Larger merchants or platforms - who understand the mechanics and can estimate true costs - usually push for Interchange++ for its transparency and fairness. - Smaller businesses rarely ask, either because they don’t know the models exist, can’t easily compare offers, or assume it’s not worth the effort. 𝗜𝗻𝘁𝗲𝗿𝗰𝗵𝗮𝗻𝗴𝗲 𝗳𝗲𝗲𝘀' 𝗰𝗼𝗺𝗽𝗮𝗿𝗶𝘀𝗼𝗻: Some jurisdictions cap interchange fees (EU, UK, China, Brazil) to reduce merchant costs and promote competition. Others (US) regulate only parts of the system - e.g., debit under Durbin for large banks - while leaving credit cards uncapped. Why? It’s a mix of politics, lobbying, market structure, and regulatory philosophy: - In Europe, regulators treat interchange as  as insufficiently competitive and have imposed caps to bring more balance and transparency. - In the US, the market relies more on competition, resulting in higher fees. - Emerging markets like India and Brazil regulate interchange as part of broader financial inclusion efforts. - In regulated markets, lower and more predictable fees help merchants manage costs and often support broader payment acceptance. In unregulated markets, higher interchange allows issuers to fund consumer perks like cashback and rewards - but merchants may face higher costs, which can influence pricing or acceptance choices. Each model shifts value differently across the ecosystem, affecting how costs and benefits are distributed between banks, merchants, and consumers. What's your experience? Opinions: my own, Graphic sources: Paypr.work [ˈpeɪpəwəːk], Truevo, Panagiotis Kriaris 𝐒𝐮𝐛𝐬𝐜𝐫𝐢𝐛𝐞 𝐭𝐨 𝐦𝐲 𝐧𝐞𝐰𝐬𝐥𝐞𝐭𝐭𝐞𝐫: https://lnkd.in/dkqhnxdg

Why Zoning is Civil Rights Work When most people hear the word zoning, they think about technicalities: setbacks, height limits, density allowances. It sounds dry, like something only planners or lawyers care about. But here’s the truth: zoning is not neutral. It’s about who gets to live where, and under what conditions. Which means zoning is civil rights work. A Tool of Exclusion Zoning has long been used to draw invisible lines that separated people by race and class. -Early 20th-century zoning explicitly barred Black families from white neighborhoods until the Supreme Court outlawed it in 1917. -When race-based zoning was struck down, cities pivoted to “exclusionary zoning”, large-lot single-family requirements, bans on apartments, and parking mandates. The effect was the same: keeping certain people out. -Combined with redlining and urban renewal, zoning became a powerful tool for segregation and disinvestment. The legacy is visible today. In many cities, the neighborhoods with the best schools, green space, and transit are zoned for single-family homes only, shutting out renters, working-class families, and first-generation buyers. Why Reform Matters Now When we talk about equity in housing, zoning is often left out of the conversation. But it shapes everything else: -Housing access. If only single-family homes are allowed, and those homes start at $500K, who can afford to move in? -Opportunity. Zoning dictates whether a child grows up near strong schools, jobs, and transit, or in an isolated area with fewer resources. -Affordability. Allowing duplexes, triplexes, and small multi-family homes can open the door to more affordable options without subsidies. In other words, zoning is not just land use policy. It’s opportunity policy. Zoning as Repair If zoning has been used as a tool of exclusion, it can also be a tool of repair. Reform doesn’t mean eliminating single-family homes. It means giving communities more choices: -Legalizing missing middle housing like duplexes, fourplexes, and accessory dwelling units. -Reducing parking requirements that inflate costs and limit walkability. -Supporting mixed-use neighborhoods that connect housing to small businesses, schools, and services. When we talk about housing as a civil rights issue, we can’t only talk about programs and subsidies. We have to talk about the rules that shape the very ground we build on. The Call Take Away Zoning may look like a technical detail, but it determines who belongs where. And that makes it one of the most important levers we have for building equitable cities. Civil rights isn’t only about who can vote or who can ride the bus. It’s also about who gets to live in safe, affordable, opportunity-rich neighborhoods. If we want to live up to our values, zoning reform has to be part of the civil rights agenda. What’s one zoning rule in your city that you think needs to change?

The Evolving Face of the US Homebuyer The National Association of Realtors' (NAR) 2024 report provides a fascinating snapshot of the US housing market’s buyer profile that looks significantly different than it did just a few years ago. The data reveals a changing homebuyer. The average buyer age has climbed to a record 56, underscoring the impact of high housing costs and rising interest rates that have sidelined younger would-be buyers. For first-time buyers, the average age is now 38, nearly a decade older than it was in the early 1980s. These changes signal a more mature buyer who brings accumulated wealth and likely more significant financial security to the table. Additionally, a fifth of all home purchases were made by single women, a notable demographic shift reflecting both a societal change in homeownership goals and an economic shift in who can afford to buy. By contrast, single men comprised only 8% of recent buyers. This snapshot highlights what many are calling a “bifurcated housing market,” where those able to buy homes are increasingly established, wealthier individuals, often using home equity from previous properties to secure cash purchases or make substantial down payments. This market has been largely inaccessible to younger buyers, who continue to face affordability challenges, limited savings, and reduced opportunities for financial support in the form of lower mortgage rates. With affordability gauges near record lows, first-time homebuyers hold a mere 24% share of the market, down dramatically from the 40% share held in pre-Great Recession years. Rising prices and interest rates have compounded these barriers, leading to a market where nearly three-quarters of all buyers have no children under 18 at home, reflecting an older and more established buyer profile than in decades past. While this report offers a look back, the trends it captures underscore a potential turning point. Recent mortgage application data suggests that prospective buyers who had previously been priced out or sidelined may begin to re-enter the market as interest rates stabilize. If these sidelined buyers do return, particularly younger and more diverse demographics, the profile of the typical buyer could again start to shift, gradually increasing diversity in age, household composition, and race among homebuyers. At Havas Edge, we’re continually analyzing these demographic shifts to support brands in delivering timely, targeted strategies that meet the realities of today’s buyers and the anticipated resurgence of those who’ve been waiting on the sidelines. #RealEstate #Homebuyers #MarketTrends #HousingEconomics #ConsumerInsights

India offers consistent returns, macro stability and strong governance, all the ingredients global real estate investors look for in a growth market.   In today's edition of The Economic Times, I discuss why India stands out as a premier destination for patient capital.   1️⃣ Consistent Growth Trajectory: India remains the world's fastest-growing major economy, with the IMF projecting 6.4% GDP growth for 2025 and 2026. 2️⃣ Enhanced Market Transparency: JLL's 2024 Global Transparency Index ranked India as the world's top improving market, creating a more transparent and predictable investment environment. 3️⃣ REIT Market Momentum: Indian REITs have delivered impressive 6-7% dividend yields, well above global averages, attracting substantial foreign investment over the past two decades. 4️⃣ Infrastructure & Technology Hub: The growth in sectors like warehousing, data centers and industrial facilities reflects India's transformation into a modern, digitally-enabled economy.   JLL is positioned to help investors navigate India's dynamic market through our deep local expertise and global platform, ensuring they maximize value from India's compelling real estate opportunities.   https://lnkd.in/dhaRFbBD

Consider this suggestion that has helped me survive this industry for three decades at Microsoft, Google, and Amazon…during this holiday season step back from the endless cycle of activity and think, reflect, and live in the moment. Being busy every second isn’t what leads to inspired decisions or breakthroughs. Instead, it can stifle creativity, increase stress, and prevent the innovative thinking that moves the needle. Ignore work and be with your family – I guarantee that you will have better ideas and more energy when you restart next year. Here are the specifics: 1. Create Space for Innovation: The best ideas often emerge when you have room to breathe and think. Give yourself permission to slow down over the holidays. With that mental breathing room, you’ll be better equipped to imagine creative approaches, develop new strategies, and identify opportunities that may have been hidden in the day-to-day grind. 2. Prevent Burnout: Non-stop work leads to burnout—worn-down energy levels, reduced clarity, and diminished effectiveness. By intentionally setting aside time to recharge, you protect your mental and physical well-being. Returning to work refreshed means you can hit the ground running with renewed focus, making it easier to channel your energy into the projects that drive real results. 3. Refresh Your Objectives: Innovation doesn’t just appear out of thin air; it emerges when you thoughtfully consider what’s been working and where you can improve. Use the slow ramp at the start of the year to reflect on the road ahead. Coming back with a fresh perspective will help you zero in on what matters most, ensuring your efforts align with your core objectives. 4. Invest Time in Yourself: Slowing down provides time for learning and personal growth—reading, thinking, or exploring new perspectives outside your normal routine. By expanding your horizons during the break, you return to the office with heightened curiosity and sharper judgment, ready to tackle complexity. This holiday season, step away from the mindset that more activity equals more success. Instead, recharge. Let your mind wander. Immerse yourself in moments that inspire you. By doing so, you’ll return to work with greater clarity, a fresh sense of purpose, and the creative momentum.

There's something potentially remarkable brewing in the U.S. apartment market right now, and it's all about demand. Data for 2nd quarter 2024 shows that renter appetite is not only strong, but arguably downright impressive. In the year-ending 2nd quarter 2024, nearly 400,000 market-rate apartment units were absorbed on net. How does that compare historically? Nearly off the charts strong. There are 98 quarterly readings on this chart dating back to 2000, and the year-ending 2Q24 figure is the 8th largest absorption figure on record. This is actually the third-largest figure on record (behind 3Q18 and 4Q00) if you remove the pandemic era peak (mid-2021 to mid-2022). But even including the once-in-a-lifetime pandemic era demand boom, the past 12 months' worth of demand ranks in the top 10th percentile dating back to 2000. This recent demand surge defies the prevailing thought that job growth is the be-all and end-all driver of housing demand. It's so much more than that, and one of the reasons why I'd argue it's vitally important to look at a holistic set of driving factors. Demographics, wage growth, pent-up demand, immigration, and consumer health among a myriad of unmentioned factors. This is one of the reasons why RealPage's market forecasts rely on a dozen-plus additional exogenous variables beyond job growth. Perhaps the BIGGEST thing that appears to be flying in the face of conventional wisdom though? Household formation. I'll tease this for a forthcoming post later this month, but get this: the mean # of residents per new lease agreement through May 2024 is the LOWEST figure since 2016. In other words, households aren't doubling up. If anything, the data might suggest that they're dissolving which means new household formation is happening outside of job growth-driven demand. (More on this idea later in July!) Assuming that 3Q24 is otherwise "normal" (meaning about 100k units will be absorbed) then that will push the trailing 12 month figure above 400,000 which was only recorded on one other occasion outside of the pandemic era.