What I’m Reading
Dead on Arrival: $12.3 trillion of economic stimulus over the past year effectively killed off the US credit default cycle despite the lingering pandemic, resulting in the lowest-rated companies enjoying their cheapest borrowing costs in history. Bloomberg
Blowback: The Consumer Financial Protection Bureau announced an interim rule on Monday that will allow tenants to sue debt collectors who violate the national ban on residential evictions. Attorneys for landlords and other debt collectors who wrongly evict tenants could also face federal and state prosecution. The moratorium remains embattled in the courts where its authority has been whittled away in recent months. Will be interesting to see what the impact of the CFPB rule will be. CNBC
Consolidated: In 2007, there were roughly 32,000 production homebuilders operating in the US. In 2017, that number had dropped down to just 15,500. At the same time, big public builders – which are more risk averse than smaller rivals – have gained dominant market share in growth markets. These conditions make it more difficult both for new and innovated companies to emerge and construction volume to scale up to meet demand. Wall Street Journal
Ripe Targets: Real estate owners selling struggling hospitality and skilled nursing properties are finding plenty of buyers, with an increasing number converting distressed assets into new uses that are in high demand, like affordable housing, behavioral health facilities and student accommodation. So much for the hundreds of billions raised to buy distressed real estate. JLL
Flexing: An Atlanta firm called Saltbox that bills itself as coworking for distribution facilities is planning a nationwide rollout that will allow smaller tenants to access flexible lease terms not normally available in the warehouse market. This is a fascinating concept – I would argue much more so that office co-working. Will be interesting to see how it scales. Bisnow
Chart of the Day
Corporate inventory levels are getting awfully tight.
Source: Evercore ISI
WTF
Bewitching: Police are looking for a woman who offered witchcraft and spiritual services to victims by proposing to ‘cleanse’ their cash, causing it to double or triple in days, before making off with the dough because Florida. Shockingly, this did not end well for the victims. ClickOrlando
Wedding Crashers: A couple planned an elaborate wedding at a $5.7MM mansion that they didn’t own and didn’t have permission to use only to be caught by the owner who was trying to sell the property because Florida. Daily Mail
Basis Points – A candid look at the economy, real estate, and other things sometimes related. Visit us at RanchHarbor.com