Transferees will now need to print a hard copy of the I-94 indicating lawful admission to the United States by visiting www.cbp.gov/I94. This additional step will be necessary to ensure that all application procedures go smoothly throughout service delivery.

For those that don’t remember the initial era of the Tampa Bay Devil Rays, summarizing the on-field results is pretty straightforward. The team lost over 90 games every season for a decade, locked up last place in the division and quickly became the laughingstock of the league. What was really surprising was the lengths that original ownership went to disenfranchise themselves from their community and fan base as well. Keri’s anecdotes are plentiful and colorful. When the team invited a local Boy Scout troop to sing the national anthem, they enraged the community by charging the troop admission to the ballpark. The owners were so frugal, they didn’t even provide internet access to employees.

After several years of floundering, the original owners sold to a group of young Wall Street whiz kids with no baseball experience who championed the idea of small, constant, incremental improvement in every facet of their business. This is where the book’s title came from. Although the book may be a little heavy on the intricacies of baseball at times, it was the stories of the management structure that I found most interesting. This new ownership group created a process and delegated responsibilities to employees all the way down the line, fostering a culture of trust and responsibility that hadn’t existed in the organization from its creation. By following the examples of their new leaders, the rest of the staff took pride in their new-found responsibility and completely bought in to the process.

Success on the field soon followed and 10 seasons after their creation (and 3 years after their sale to new ownership), the Rays finally had their first winning season. The Rays have now consistently been one of the most consistently competitive teams in all of baseball while their employees relish the challenge of battling the larger, wealthier franchises. For those looking for a change of pace in their typical assortment of management books, The Extra 2% is quick and worthwhile read.

Shiller says there is a lot of “speculative excitement” in specific housing markets like Phoenix, Las Vegas and Los Angeles—the first two among the worst performing markets after the last bubble burst. But he’s not convinced that housing bubble is forming.

“People shouldn’t assume the housing market is off to the races,” says Shiller. “[For] the country as a whole it’s rather unlikely that we’ll have another boom like the one we recently had because that’s such a rare and unusual event.” The last boom was countrywide and financed by excessive leverage, he says.

Please read the entire article from The Daily Ticker.

Top Annual Rent Increases by Metro (Year-Ending  12/31/12)*

1. San Francisco (8.0%)
2. San Jose (7.7%)
3. Oakland (7.1%)
4. Denver-Boulder (5.9%)
5. Nashville (5.1%)
6. New York-New Jersey (5.1%)
7. Houston (4.8%)
8. Charlotte (4.6%)
9. Portland (4.4%)
10. Seattle-Tacoma (4.3%)

* Source: MPF Research

Demand     

• Tenant demand continues to outpace supply, sustaining the landlord’s market
• This market imbalance has resulted in new charges to tenants, including non-refundable holding fees at application, stricter expectations of initial rent and security deposits, and rejection of Diplomatic Clauses

Supply

• Rental inventory remains extremely low — less than 5.1% in most markets nationwide and as low as 0.9% in some markets such as Boston and Manhattan
• Rental vacancy rates have fallen for 10 straight quarters

 Prices

• Annual rent price growth pace slowed to 3% in 2012 following an increase of 4.7% nationwide during  2011

Dwellworks would also like to highlight the following events currently impacting US Destination Services delivery:

School Tour Challenges: Increased Security

• Dwellworks is encountering increased anxiety when expatriates contemplate enrolling children in US public schools
• Since the Newtown school tragedy in December, school tours have been extremely restricted throughout the US. Tours for assignees will become a rarity, as school security measures continue to heighten across the country. Expectations must be set with assignees that they will not be able to view or tour a school before their child is registered
• Dwellworks is coordinating with its DSC network to monitor changes in school policies and requirements regarding allowing school tours. Virtual tours may become a possibility in some districts in the near future
• Restricted access to schools may be a challenge for an assignee since home selection is often based on school district. Dwellworks will make every effort to set proper expectations and develop strategies for school and home to be selected appropriately

Social Security and Customs Watch: Sequestration and Potential Furloughs

• On January 1, Congress passed legislation delaying the sequestration process by two months. Sequestration, included in  the 2011 Budget Control Act, would have imposed automatic cuts in federal spending and furloughs of some federal  employees. Action on sequestration has been postponed, but there has been no final resolution
• Dwellworks continues to monitor the potential impact of furloughs of Social Security Administration and Customs and Border Patrol/TSA personnel on services required by expatriates

 Possible Sea Shipment Delays: Dock Strikes on West and East Coasts

• An eight-day strike by clerical workers at Pacific ports in Los Angeles and Long Beach ended on December 5, while on December 29 another longshoreman strike threatened work stoppages along the East Coast and Gulf of Mexico but was avoided by a 30-day extension of the existing contracts
• Dwellworks continues monitoring these work stoppages to identify potential delays in delivery of expatriates’ sea  shipments, which can increase temporary living and furniture rental expenses

 Process Update: Connecticut Driver’s License

• As of January 3, 2013, the state of Connecticut requires anyone with a driver’s license not issued in the US (with the exception of German, French and Canadian licenses) to obtain an Adult Learner’s Permit for 90 days before applying for a CT driver’s license
• Expats with home country license in English or with an International Driver Permit are allowed to drive using their Learner’s Permit
• This change may delay the time when an expatriate can obtain insurance and purchase a car, potentially increasing the number of days a rental car is required

2012 Rental Market Report

According to MPF Research, national occupancy rates fell slightly in Q4 2012 as compared to the summer high of 95.4%, as indicated in the occupancy chart (right). However, sourcing suitable housing in most US markets remains a challenge with fast turnover of listings, increasing rents, and limited negotiation

 Future Projections

• Demand will continue to be high, as the job market strengthens in 2013 and the loss of renters to home purchase is expected to be minimal
• Supply will increase slowly, as the number of apartments under construction at the end of 2012 climbed to 224,000 units across the nation’s 100 largest metros. Almost 70% of those units are in properties where building completion is scheduled for 2013
• US rental price increases in 2013 are expected to be similar to 2012
• Rents in Houston, Seattle and San Francisco markets are expected to rise faster than most markets

Notable businesses contributing to the area growth include ExxonMobil and Chevron. With so many prospective tenants seeking rentals, reports show Houston’s vacancy rate as low as 3%.  As a result, Houston transferees can expect a baseline monthly rent of $1270.50 for a one-bedroom apartment in popular areas like The Galleria, River Oaks, and Midtown.  Even as construction increases in busy districts like the Inner Loop, rental rates are still expected to increase by 4.6% during the year.

The solution for helping transferees adjust to this hot market will be familiar to most in the relocation industry: establishing clear expectations prior to their arrival. Since availability is extremely limited and costly, the importance of keeping an open mind during the home finding process cannot be overemphasized.

The change in the rental market, in Houston and other large markets, could have an effect on Dwellworks, and Destination Services programs in general, in two ways:

1. The increase in construction offers more rental options to new transferees and allows for greater home finding success.
2. A flood of new properties could force an overall rental rate reduction making it easier to stay within budget during the home finding process.

The 2012 award winners are:

• Jonell McWilliams of Fulshear, TX, Ferrah McKeown of Los Gatos, CA, Vita van Tonder of Katy, TX, and Claire Hall of Oakville, ON – Destination Services division;
• Nancy Chisholm of Gloucester, MA – Career Advising division;
• Dave Demarest of Northville, MI and Michael Wheeler of Pittsburgh, PA – Property Management division;
• Gary Paluszcyk of Pewaukee, WI, Butch Hicks of Vienna, VA, and Dena Knopp of Calgary, AB – Valuation Services division

Patrick Spicuzza, Senior Vice President of Supply Chain at Dwellworks, stated, “At Dwellworks, we understand the importance of having a dedicated network that believes in our value system of delivering outstanding service to our clients. As an extension of our organization, this year’s award winners are exceptional representatives and we are proud to call them our partners.”

“We are incredibly grateful for all of the hard work and dedication that these suppliers have provided throughout the year,” said Bob Rosing, CEO of Dwellworks. “Their high levels of service are critical as we continue to grow and serve our clients. We look forward to our continued partnership with all of our suppliers who continue to work hard and provide some of the best service in the industry.”

Dwellworks manages a supply chain of over 13,000 independent contractors throughout North America. For information on becoming a part of Dwellworks’ Supplier Network please contact supplychain@dwellworks.com.

Rents at less-expensive Class B downtown buildings in the third quarter of 2012 have decreased slightly from the second quarter, but have still increased almost 5% from last year.  Occupancy has increased in the third quarter of 2012 from the second quarter, but has decreased from last year.

With rents rising so high, traditional renters were expected to become condo owners.  On the contrary, renters are showing preference for the flexibility of renting and view ownership as a burden, especially those with the possibility of relocation.  For others, it is simply not as easy to obtain approval or funds for a loan as it was during the housing bubble.

Some worry that the rate of absorption – the change in the number of occupied units – has fallen and the 4,700 units slated to be built will not be filled easily. Occupancy of Class A units fell in the third quarter of 2012, much more drastically than during the second quarter.  Developers believe that current vacancies are a reflection of renters not finding what they are looking for, and thus these new units will spur demand.