What I’m Reading
Backroom Deal: The geographical boundaries of thousands of census tracts, which are crucial in determining how federal dollars are distributed through dozens of programs, were changed with the 2020 census, and others were removed, merged or replaced completely. About 15% of census tracts that were designated as opportunity zones by state governments in 2018 no longer exist. As one would expect, there were a lot of politically connected winners who lobbied for changes here, which will result in further scrutiny of the program. Bloomberg
Locked and Loaded: Private Equity firms’ global real estate funds are now sitting on more than $300 billion of unspent cash, according to Preqin data. Their attention is now turned to what happens when government support and bank forbearance expires. Most of this capital is looking for distressed opportunities which, paradoxically will make those opportunities more difficult to come by. WMRE
Primed for Growth: Personal income grew a whopping 10% MoM in January, the second largest increase on record. It has also increased 13% since February 2020. This was due, almost entirely to the latest round of stimulus. With savings and incomes up and more government money likely coming, this could be the perfect backdrop for a post-pandemic economic boom. Wall Street Journal
Burning Off: Multifamily concessions spiked hard in 2020, peaked in the summer and began to decline in the 4th quarter. With vaccinations being deployed and the economy reopening, concessions should continue to trend downward in 2021. Globe Street
Inflection Point: Real-time analysis of advertised rents in commercial lease listings points to improving market conditions as landlords begin to raise asking rates again. CoStar
Chart of the Day
Behold, the ultimate hockey stick chart.
Source: @SoberLook
WTF
Never Give Up: A golfer may have drowned searching for a lost ball in a water hazard because Florida.(h/t Steve Sims) Fox 5
Choose Your Weapon: A naked man carrying only a bible was shot after trying to get into several apartment complex units because Florida. CBS Miami
Basis Points – A candid look at the economy, real estate, and other things sometimes related.
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