One Big Thing: I wrote a year in review (or at least the first 10 months) piece that the Mann Report is running as a cover feature. Here’s an excerpt.
2020 was the year when time both accelerated and stood still. From a purely human perspective, crises and trauma are known to manipulate how we perceive the passage of time. For what unfolded in the real estate capital markets this year, one could say there is a similar effect. Moving from a mostly stable market at the beginning of the year to a blindsiding economic crash in March and each twisting and turning month thereafter, each sector of this industry was impacted in a different way. Some sectors, like single-family (both for rent and for sale) and industrial, appear to be emerging as winners, benefiting from trends that are accelerating their performance. Other sectors, such as retail and hospitality, are seemingly frozen in time, with their fates much more in question.
The gist is that 2020 is not another 2008 when the capital markets simply froze up and everything became unfinanceable. Instead, capital markets have been highly stratified by product type with some segments performing well and others performing poorly. You can find the entire article at the Mann Report.
What I’m Reading
Virtual Reality: With business travel still largely on hold, private real estate companies have turned to virtual road shows in order to raise capital. NREI
Ready to Pounce: Distressed debt investors have been waiting for opportunities ever since the pandemic hit. However, quick and aggressive central bank actions have kept them mostly on the sidelines. Financial Times
Pay Up: Lenders are losing patience with mall owners who are behind on payments. In the meantime, the battles between mall landlords and retailers over back rent rage on. Wall Street Journal
Slowdown: While single family permits and starts have soared in 2020, multi-family permits and starts are well below where they were a year ago. RealPage
Chart of the Day
If you guys think I’m not going to post an interesting chart that includes the term “Fiscal Thrust,” then you have dramatically overestimated my level of maturity.
Source: BCA Research
WTF
I Can’t Wait for This To Be Over: Three people were shot Sunday in Kansas during a confrontation between multiple people and a man who believed they had stolen several of his lawn signs supporting President Trump. NY Post
Under the Hood: A man opened the hood of his car when the check engine light went on only to find a 10-foot Burmese Python because Florida. WFTV 9
Erection Interference: Pornhub allowed only those who had voted in this year’s presidential election to enter their website yesterday. NY Post
Basis Points – A candid look at the economy, real estate, and other things sometimes related.
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