What I’m Reading
Move In Special: Office landlords are increasingly offering up more free rent and larger TI packages in an effort to attract tenants but still maintain base rental rates. This is why its so critical to look at net effective rent – the base rates do not come close to telling the entire story. NREI
The Matrix: New office designs are likely to focus on more fresh-air amenities like roof decks, operable windows, and high-quality air filtration systems but also smart building technologies that will allow for both security and workplace flexibility. Globe Street
Overstated? A Pew survey found that only 3% of of US residents had moved either temporarily or permanently due to COVID-19, suggesting that the big-city exodus narrative that has dominated the press this year is certainly noticeable but perhaps not as spectacular as often reported. Bloomberg
Collectors Item: Sports trading cards are enjoying something of a renaissance, fetching greater value than ever before and engendering excitement on a level not seen since their last golden age in the 1990s while far outperforming the S&P. Axios
Disconnect: Car sales are down almost 20% during the pandemic. However, prices have climbed to new highs, thanks to a combination of limited stock, cheap financing and low fuel prices that have consumers gravitating to bigger, more expensive trucks and SUVs.. Wall Street Journal
Gridlock: Trucking companies are reporting stronger freight demand as retailers and manufacturers move to restock depleted inventories. Wall Street Journal
Chart of the Day
Drying up:
Market liquidity fell in 111 of 155 global commercial real estate markets in the second quarter of 2020, according to the midyear update of the RCA Capital Liquidity Scores. The count of markets posting lower quarter-on-quarter levels of liquidity is the worst since the Global Financial Crisis.
Source: Real Capital Analytics
WTF
Up, Up and Away: The FBI is investigating a pilot’s report of a ‘guy in jetpack’ flying 3,000 feet in air near planes at LAX. Fox LA
Ironic: A drunk driver was arrested after crashing his Mazda into an electronic sign cautioning motorists to “Drive Sober or Get Pulled Over” because Florida. The Smoking Gun
Basis Points – A candid look at the economy, real estate, and other things sometimes related.
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