California and New York have both upped their minimum wage to $15/hour, a move that could have serious impact on real estate.
Minimum wage increases in two of the country's most populous states will mean rising costs for industrial tenants, especially in e-commerce centers that use low-wage labor to staff their warehouses, according to the Washington Post.
A recent CBRE report calculated that a $1 increase in average wages means a $1M increase in labor costs for a 500-employee facility.
On the flip side, higher wages will mean more affordable multifamily and single-family housing in the two coastal states, which harbor cities with some of the highest cost of living in the world. [WaPo]
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