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> Blackstone has switched attention to much less mature niches such as logistics, student housing and life-sciences sites. It says a collapse in construction work in these areas will restrict future supply, pushing up values of the assets it has been buying.

A collapse in construction work? Is there an issue with finding construction workers or is it something else?

USC has a lot of student housing with more being built. I've worked with a couple of the developers in the area and finding crew is the least of their problems. But this is L.A. and it's a bit different, so I genuinely wonder what they mean by construction collapse.

Vacancy rates in existing buildings couped with massive increases in cost of construction. The new builds will have absolutely horrible yield, the old buildings are often vacant to avoid the write down. Nobody wants to play.
Ah, that makes sense. Thanks!

I sometimes forget the bubble of my work in L.A. One of the developers I work with builds student housing and buys complexes to house some homeless through our agency. They're having no problems with amassing and building properties and maintaining their self-managed buildings. At least in the USC area, it seems like there's no end to the construction boom as long as parents and governments are willing to pay the prices.

Spending money to avoid a fire sale of written down assets. Well.. it's possible a DC play in the north of England can come good but I think at this point, $339b of Blackstone property is worth 1/3 to 1/2 of that nameplate value.