October 5th – The Empire Strikes Back

What I’m Reading

The Empire Strikes Back: Despite a persistent narrative about California being a net COVID loser, the metros with the largest apartment rent increases in the 3rd Quarter of 2020 were Riverside and San Bernardino Counties, according to RealPage, Inc’s quarterly report on effective asking rents.  California’s denser and more expensive urban metros fared poorly as residents looked for more space and less expensive living conditions that can be found further inland.  RealPage See Also: The Inland empire is the tightest housing market in the US.  The Press-Enterprise

Insatiable Demand: Net absorption of big-box warehouse space is up a whopping 51% so far in 2020, as the pandemic-driven surge in online sales sent companies scrambling for additional warehouse space.  Amazon is leading the way, of course.  Colliers 

Tough Road Ahead: Once the Covid-19 pandemic passes, the U.S. will have to contend with weaker population growth – thanks to a lower birth rate and less immigration – and the drag of high debt.  Wall Street Journal

Shifting Needs: Underperforming, older extended stay hotels – with kitchens and larger floorplates – make potentially compelling targets for conversion to multifamily uses. Costar News

Down to the Wire: California’s Proposition 15, which would raise taxes on commercial and industrial property by eliminating their prop 13 protection had  51% of voters in the latest poll by the Public Policy Institute of California in September.  This was down slightly from 53% in April.  Public Policy Institute of California

Chart of the Day

Smaller banks love themselves some commercial real estate.

Image

Source: Wall Street Journal

WTF

Feeling the Urge: A woman was arrested for (allegedly) masturbating in a 7-Eleven because Florida.  The Smoking Gun

Throw Down: A couple was arrested at the Miami International Airport after getting in a brawl with employees when they refused to wear shoes because Florida. The Daily Mail

Basis Points – A candid look at the economy, real estate, and other things sometimes related.

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