What I’m Reading
Downdraft: The National Multifamily Housing Council (NMHC)’s Rent Payment Tracker found 75.4 percent of apartment households made a full or partial rent payment by December 6. While that is a whopping 780 basis point drop from 2019, it should be noted that December 5th and 6th both fell on the weekend this year, which may skew collections lower. That being said, this is not an encouraging sign. I suppose that we will know more next week. NMHC
Magnetic Attraction: The pandemic and the prospect of working remotely have spawned an exodus from New York and San Francisco to sunnier, more-affordable cities. Perhaps no city in America has benefitted more than Austin. Wall Street Journal
Full House: In the latest sign that our logistics infrastructure is still dramatically underbuilt, Amazon sellers are expressing concern that they won’t be able to meet holiday demand after the eCommerce giant put limits on 3rd party seller warehouse space thanks to a lack of capacity. CNBC
Running on Empty: Yield hungry investors have driven inflation-adjusted yields on corporate bonds to zero. For those of you keeping track at home, this absolutely supports the case for cap rate compression. Wall Street Journal
Unhappy Returns: The downside of record eCommerce sales this holiday season will be a flood of returns back into the supply chain that will create reverse-logistics challenges for retailers and 3rd party logistics operators. IREI
Chart of the Day
Remarkable chart. So much for the bubble. Part of this is due to a decline in cash out refinances and part is due to strong appreciation. At some point, lenders will start pushing cash out refinances again once the current refi boom fades.
Source: JBREC
WTF
Drying Out: Russian officials are warning citizens to avoid alcohol for two months after receiving the country’s COVID-19 vaccine. If you want social unrest, this is how you get social unrest. Have to assume that this is bullish for cannabis though. NY Post
Nature is Healing: An NYC Chipotle has been overrun by rats that have been devouring on avocados, biting employees, and chewing through wiring. NY Post
Basis Points – A candid look at the economy, real estate, and other things sometimes related.
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