What I’m Reading
Out of Date: According to JLL, 78% of all cold storage warehouses are at least 20 years old and the average age of a US cold storage facility is 42 years old. This is a problem in an industry where the technology has changed so dramatically in recent years, and likely an opportunity. (h/t CJ Collins) Supply Chain Dive See Also: Increasing demand for cold storage spurs spec projects and institutional investment. NREI
Overwhelmed: With the holiday shipping season now upon us, carriers face a unique problem this year – they are already at capacity. The result will be rising prices and declined orders. Wall Street Journal
Downward Facing: Yoga Works is the latest gym to succumb to the pandemic shutdown. The 60+ studio chain filed for Chapter 11 bankruptcy and plans to shut down all of their brick and mortar locations, relying solely on their streaming platform post-reorganization. Yet another setback to retail landlords betting big on experiential tenants. Yoga Journal
Survival of the Fittest: Brick and mortar retailers who have a dominant share in their category are likely to be the biggest long-term beneficiaries of the pandemic. Medium
Under Pressure: Collapsing prices on CMBS securities with a heavy concentration in Manhattan real estate are causing headaches for investors and could be a preview of what is to come for the rest of the US commercial real estate market – especially retail, hospitality and office. While this is undoubtedly bad, I don’t think it is anything close to the 2008 scenario where defaults create contagion. This market simply isn’t that large compared to the residential mortgage market and there is a lot more liquidity and less leverage in the system than there was back then. That being said, prices will likely fall in some asset classes. Wall Street Journal
Chart of the Day
Source: Len Kiefer
WTF
That’s Gotta Hurt: Indian airport authorities literally struck gold when they spotted a man walking oddly — and discovered he had about 2 pounds in bullion shoved into his rectum, according to a report. NY Post
Top? In the latest sign of perhaps-overheated retail trading in the stock market, porn star Lana Rhoades is pitching trading classes on her Instagram account. Zero Hedge
Basis Points – A candid look at the economy, real estate, and other things sometimes related.
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