Real Estate

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

Over the last year, nearly every FMCG executive I’ve spoken to whether sitting in Chicago, Paris, or São Paulo has echoed the same challenge: “We need to get closer to the consumer, faster.” Global brand, local nuance the future of FMCG growth depends on how well your leadership understands the street, not just the spreadsheet. It’s no longer enough to run a global playbook and hope for local resonance. Why? Because the center of gravity in FMCG has shifted. 84% of FMCG companies are now increasing local decision autonomy in key growth markets. (Bain FMCG Operating Model Report, 2023) → That means your CMO can’t be the only one with a finger on the pulse. → Your regional GM can’t just execute HQ strategy. → And your global leaders can’t lead with assumptions they need cultural fluency and operational humility. In other words: local-for-local is not just a supply chain shift. It’s a leadership shift. The most successful candidates weren’t those who had rotated through five global hubs. They were the ones who could… → Read the cultural nuances of consumer behavior in that specific region → Navigate the regulatory quirks that could derail a product launch → Influence global teams while building trust with local retailers → Speak the language literally and commercially They understood the street not just the spreadsheet. And they had the rare ability to connect what’s happening on the ground with what needs to be shifted at the center. These are the leaders FMCG needs now. → Strategists who don’t just adapt to the market, they anticipate it. → Operators who don’t wait for HQ they build and test in-market. → Connectors who know when to push back and when to align. Because in today’s world, speed and relevance win. And that doesn’t come from waiting for global sign-off. It comes from empowering the right local leaders. Here’s where I see many companies trip up: They treat “local” as junior. As operational. As reactive. The truth? Your next competitive edge may be a GM in Manila, a Marketing Director in Lagos, or a Commercial Lead in Warsaw who’s trusted enough to build strategy from the ground up. That’s what global FMCG companies are starting to understand and what we’re helping them solve for in every executive search we run. Not just global leaders who can work across regions…but local leaders who can lead across functions, cultures, and expectations while driving growth with urgency and empathy. This is the new face of global FMCG. Not centralized, but coordinated. Not rigid, but responsive. Not top-down, but built from the middle out. #ExecutiveSearch #FMCGLeadership #GlobalGrowth #ConsumerGoods #TalentStrategy #LeadershipHiring

The Missing Middle is Still Missing: Why I Believe We Need More Than Just Luxury and LIHTC In most cities, we have two dominant housing models: -Luxury apartments with rooftop decks and garage parking, funded by private capital, marketed at the highest rent the market will bear. -Affordable housing financed through Low-Income Housing Tax Credits (LIHTC), often restricted to those earning 30%–60% of Area Median Income. What’s missing is everything in between. What is “Missing Middle Housing”? Missing Middle Housing refers to the types of homes that used to be common but have largely disappeared from new construction: -Duplexes -Fourplexes -Bungalow courts -Walk-up apartments above corner stores -Small multi-family homes in walkable neighborhoods -Creative infill developments These housing types fill a crucial need for working-class people, teachers, firefighters, baristas, social workers, and young families who don’t qualify for LIHTC housing but also can’t afford luxury rent or a down payment on a single-family home. Why It’s Still Missing The reason we don’t see more of this is not because there’s no demand. It’s because our systems actively work against it. Zoning laws that ban multi-family housing in most neighborhoods Parking requirements that inflate costs and reduce feasibility Financing models that favor large-scale over small-scale development Public resistance to change, often rooted in misinformation or exclusion Developers aren’t incentivized to build Missing Middle housing. Cities rarely streamline it. And when we talk about housing policy, this middle tier gets lost in the noise between high-end and deeply affordable. What We Need to Change *We need zoning that allows for gentle density. *We need capital that supports small-scale, context-sensitive development. *We need public conversations that value housing diversity as a community strength. We also need to stop pretending that LIHTC alone can solve our affordability crisis. It’s one tool. A powerful one, yes. But it cannot be the only strategy on the table. It’s Time to Build the Middle When we build only for the top and the bottom, we leave out the majority of our communities. We erode economic mobility. We undermine walkability. We disconnect our neighborhoods from the people who hold them together. If we’re serious about equitable cities, we have to bring back the middle. Not just in price point, but in form, in access, and in who gets to live where.

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

A Return To Office mandate is a funny thing. A trade-off of lower workforce productivity, morale, retention, engagement, and trust in exchange for...managers feeling more in control. It's more a sign of insecurity and incompetence than sound decision-making. The fact that 80% of executives who have pushed for RTO mandates have later regretted their decision only makes the point further, and yet every few months more leaders line up to pad this statistic. In case your leaders have forgotten, return to office mandates are associated with: 🔻 16% lower intent to stay among the highest-performing employees (Gartner) 🔻 10% less trust, psychological safety, and relationship quality between workers and their managers (Great Place to Work) 🔻 22% of employees from marginalized groups becoming more likely to search for new jobs (Greenhouse) 🔻 No significant change in financial performance while guaranteeing damage to employee satisfaction (Ding and Ma, 2024) The thing is, we KNOW how to do hybrid work well at this point. 🎯 Allow teams to decide on in-person expectations, and hold people accountable to it—high flexibility; high accountability. 🎯 Make in-person time unique and valuable, with brainstorming, events, and culture-building activities—not video calls all day in the office. 🎯 Value outcomes, not appearances, of productivity—reward those who get their work done regardless of where they do it. 🎯 Train inclusive managers, not micromanagers—build in them the skills and confidence to lead with trust rather than fear and insecurity. Leaders that fly in the face of all this data to insist that workers return to office "OR ELSE" communicate one thing: they are the kinds of leaders that place their own egos and comfort above their shareholders and employees alike. Faced with the very real test of how to design the hybrid workforce of the future, these leaders chose to throw a tantrum in their bid to return to the past, and their organizations will suffer for it. The leaders that will thrive in this time? Those that are willing to do the work. Those that are willing to listen to their workforce, skill up to meet new needs, and claim their rewards in the form of the best talent, higher productivity, and the highest level of worker loyalty and trust. Will that be you?

This isn't getting enough attention outside of multifamily industry circles: Apartment starts are plummeting to 11-year lows. Multifamily completions are outpacing starts by the widest margin (-120k units) since 1975. I mention this because we keep hearing/reading how "housing construction is at all-time highs," but that's a dated like with a 2022 expiration date. We're seeing the fruit's of 2022's all-time high in construction activity here in 2024, where starts are morphing into completions. But housing construction (overall) is down 10% from the peak, and multifamily is down even more. In 2024 through July, we've completed 314k multifamily units and we've started just 193k units, according to Census data. That year-to-date start total is the nation's lowest since 2013. As I've noted here before, I think we're reverting back to early 2010s supply levels -- not late 2010s (pre-COVID) supply levels, and there's a big difference between the two eras. Additionally, a larger share of supply in this next cycle is likely to be income-restricted affordable housing because tax incentives are helping offset sticky costs + higher rates and flat/falling rents. This is why we're seeing so much renewed bullishness on the multifamily outlook for 2026 and beyond -- particularly for higher-demand markets getting pelted by lease-ups today. This data is central to the thesis among the big portfolio buyers we've seen in the news. Supply is the biggest headwind for apartment investors today, while it's an enormous tailwind for renters ... but those dynamics appear likely to shift again. It took a perfect storm of variables to push apartment construction to 50-year highs, and it's difficult to see a scenario where construction could re-accelerate back to those peaks. Some might point to the Harris campaign's housing supply plans, and those are very positive. But they focus almost entirely on low-income affordable housing and on for-sale starter homes. Barring a massive pivot that would dramatically reduce construction costs and introduce big new incentives, the plan would likely have minimal impact on conventional apartments. As I've written before (and I could be wrong), but my guess is today's completion levels will mark a generational high akin to the mid-1970s. Some of us may never see numbers like this again in our careers. #multifamily #housing #apartments

💥 New homes are now CHEAPER than resale homes 💥   This marks a significant inflection point in the housing market, reversing the historical trend where new construction commanded a premium—often as much as 20% more than existing properties. The shift, which began during the pandemic with a narrowing of the price spread, has fully materialized over the past three months.   While new home prices can be influenced by changes in product offerings or location, our Zonda data, builder survey, and NewHomeSource.com trends all confirm that real price cuts are also occurring in the new home space.   Beyond the raw data, several additional factors make new homes even more compelling for buyers: - Lower insurance premiums. New homes typically incur lower insurance costs compared to existing properties due to modern building codes and materials. - Reduced maintenance. New construction offers a maintenance-free or lower-maintenance lifestyle, saving homeowners time and money on immediate repairs and upgrades compared to the resale market. - Enhanced energy efficiency. New homes are often more energy-efficient than existing homes, leading to lower utility bills and a reduced overall cost of living. - Attractive builder incentives. Builders continue to offer incentives (e.g. buydowns or design credits), providing extra perks to buyers that can further offset costs. Zonda Sarah Bonnarens Alexander Edelman Tim Sullivan Bryan Glasshagel Evan F. #housing #realestate #newhomes

Denmark has announced it will plant 1 billion trees and convert 10% of its farmland into forests and natural habitats over the next two decades. With a budget of 43 billion kroner / $6.1 billion, the country aims to reduce fertiliser usage, restore low-lying, climate-vulnerable soils, and expand forested areas by 250,000 hectares. This represents the most significant transformation of the Danish landscape in over a century, with numerous economic and environmental benefits. What are the economic benefits? 1. Job Creation: Large-scale reforestation and land restoration projects will generate employment opportunities in sectors like forestry, environmental management, and sustainable agriculture. 2. Sustainable Agriculture: Reducing fertilizer usage promotes environmentally friendly farming practices, which can lower long-term costs for farmers and mitigate environmental degradation. 3. Climate Resilience: Expanded forested areas act as carbon sinks, reducing climate change impacts. Restoring ecosystems can stabilize agricultural yields and decrease the economic toll of climate-related disasters. 4. Biodiversity and Ecosystem Services: Restored habitats improve biodiversity, which enhances essential ecosystem services such as pollination and water purification, benefiting various economic sectors. 5. Tourism and Recreation: New natural landscapes can boost eco-tourism and recreational activities, contributing to local and national economies. What is the impact of reducing farmland on the economy? Denmark’s decision to reduce farmland is a calculated step toward sustainability, offering both immediate and long-term advantages: • Improved Land Use Efficiency: By targeting marginal or low-yield agricultural lands that require excessive inputs, Denmark reduces resource waste and prioritizes areas with higher ecological value. Farmers may adopt innovative technologies like precision agriculture to maximise yields on remaining farmland. • Economic Diversification for Farmers: Financial compensation helps farmers transition into alternative ventures such as eco-tourism, sustainable timber production, or specialty crop farming. This provides more stable and diverse income streams. • Reducing Soil Degradation: Farmland reduction helps restore soil health and fertility, ensuring long-term agricultural productivity while reducing costs associated with soil erosion and nutrient loss. • Climate Change Mitigation: Reforested areas will sequester carbon, contributing to global climate goals and reducing future economic risks tied to climate impacts. • Balancing Global Food Security: By improving agricultural efficiency and focusing on high-value crops, Denmark can contribute to sustainable global food systems without overproducing low-margin commodities. Learn more: https://lnkd.in/dZx86iUj #economy #reforestation #restoration #land #sustainable #ecosystem

Maine just legalized 3 units per lot statewide. No planning board approval needed for 4 units or fewer. But the real breakthrough isn't the density. It's what they eliminated: Maine has seen the biggest house price growth in the US since 2019. The median cost is $400k, nearly double what it was 6 years ago. Radical change was needed. So they broadly legalized ADUs as part of the larger package of reforms. Including sweeping changes to zoning and land use regulations. Here's what LD 1829 actually does: 1/ Density: • Maximum 2 off-street parking spaces for every 3 units • Three dwelling units per residential lot is now legalized • Affordable housing developments get 2.5x the base density allowance Municipalities are now required to permit multiple dwelling units per residential lot. 2/ Review Processes: • All planning board members must attend mandatory training • No planning board approval needed for projects with four or fewer dwelling units • Wastewater verification and subdivision threshold "loopholes" have been simplified Required planning board approval for smaller projects is prohibited. 3/ Other Changes: • Owner-occupancy mandates for ADUs eliminated • Uniform dimensional standards for multiple-unit dwellings same as single-family homes • Minimum lot sizes in growth areas capped at 5,000 SF with 1,250 SF per dwelling unit density This is the density breakthrough. Maine now allows up to 4 units on lots in growth areas, with just 1,250 SF of lot area per unit. That's 4x the housing on the same land. Small developers can finally compete without needing millions in land acquisition. Maine eliminated barriers that made small-scale multifamily difficult to build. The timeline for these changes: Applies immediately: Fire sprinklers, ADU definition, and mandatory training. July 1, 2026: Core zoning and density changes. July 1, 2027: All other municipalities. The bigger picture: Maine has shifted how housing density and development approval is processed. Something more states should follow. Read the full report linked in the comments.

Gone are the days when the only way to know something was wrong with your machinery was the ominous clunking sound it made, or the smoke signals it sent up as a distress signal. In the traditional world of maintenance, these were the equivalent of a machine's cry for help, often leading to a mad dash of troubleshooting and repair, usually at the most inconvenient times. Today, we're witnessing a seismic shift in how maintenance is approached, thanks to the advent of Industry 4.0 technologies. This new era is characterized by a move from the reactive "𝐈𝐟 𝐢𝐭 𝐚𝐢𝐧'𝐭 𝐛𝐫𝐨𝐤𝐞, 𝐝𝐨𝐧'𝐭 𝐟𝐢𝐱 𝐢𝐭"  philosophy to a proactive "𝐋𝐞𝐭'𝐬 𝐟𝐢𝐱 𝐢𝐭 𝐛𝐞𝐟𝐨𝐫𝐞 𝐢𝐭 𝐛𝐫𝐞𝐚𝐤𝐬" mindset. This transformation is powered by a suite of digital tools that are changing the game for industries worldwide. 𝐓𝐡𝐫𝐞𝐞 𝐍𝐮𝐠𝐠𝐞𝐭𝐬 𝐨𝐟 𝐖𝐢𝐬𝐝𝐨𝐦 𝐟𝐨𝐫 𝐄𝐦𝐛𝐫𝐚𝐜𝐢𝐧𝐠 𝐃𝐢𝐠𝐢𝐭𝐚𝐥 𝐌𝐚𝐢𝐧𝐭𝐞𝐧𝐚𝐧𝐜𝐞: 𝟏. 𝐌𝐚𝐤𝐞 𝐅𝐫𝐢𝐞𝐧𝐝𝐬 𝐰𝐢𝐭𝐡 𝐈𝐨𝐓 By outfitting your equipment with IoT sensors, you're essentially giving your machines a voice. These sensors can monitor everything from temperature fluctuations to vibration levels, providing a continuous stream of data that can be analyzed to predict potential issues before they escalate into major problems. It's like social networking for machines, where every post and status update helps you keep your operations running smoothly. 𝟐. 𝐓𝐫𝐮𝐬𝐭 𝐢𝐧 𝐭𝐡𝐞 𝐂𝐫𝐲𝐬𝐭𝐚𝐥 𝐁𝐚𝐥𝐥 𝐨𝐟 𝐀𝐈 By feeding the data collected from IoT sensors into AI algorithms, you can uncover patterns and predict failures before they happen. AI acts as the wise sage that reads tea leaves in the form of data points, offering insights that can guide your maintenance decisions. It's like having a fortune teller on your payroll, but instead of predicting vague life events, it provides specific insights on when to service your equipment. 𝟑. 𝐒𝐭𝐞𝐩 𝐢𝐧𝐭𝐨 𝐭𝐡𝐞 𝐅𝐮𝐭𝐮𝐫𝐞 𝐰𝐢𝐭𝐡 𝐌𝐢𝐱𝐞𝐝 𝐑𝐞𝐚𝐥𝐢𝐭𝐲 Using devices like the Microsoft HoloLens, technicians can see overlays of digital information on the physical machinery they're working on. This can include everything from step-by-step repair instructions to real-time data visualizations. It's like giving your maintenance team superhero goggles that provide them with x-ray vision and super intelligence, making them more efficient and reducing the risk of errors. ******************************************** • Follow #JeffWinterInsights to stay current on Industry 4.0 and other cool tech trends • Ring the 🔔 for notifications!