What I’m Reading
Risk On: According to CBRE’s 2021 Investor Intentions Survey, most core or core-plus investors expect their unlevered target returns to fall slightly or stay the same. However, those playing in the value add and distressed spaces anticipate that returns will increase, especially those based in the US. In related news, the number of investors chasing opportunistic and distressed opportunities spiked from 16% in 2020 to 29% in 2021. CBRE
No Escape: There is a chance that the proposed Biden tax hikes could hit commercial real estate retroactively based on prior tax change precedent. This is not a drill. Bisnow
Out of Favor: Buyers in urban areas have shifted their preferences substantially, eschewing condos for single family homes with more space. As a result, the urban condo market is one of the few places that a decent deal can be found on a home right now. MarketWatch
Mixed Bag: Workers are returning to the office in Dallas, Houston and Austin. Not so much in New York and San Francisco. USA Today
Hardest Hit: The city of San Francisco is projecting its property tax base will decline for the first time in more than a quarter-century as its tech centric workforce went remote. The Real Deal
Chart of the Day
Real estate returns are actually still attractive on a historical basis versus fixed income (even though it may not appear that way on the surface).
Source: Green Street
WTF
Mistaken Identity: A shirtless 19-year-old man was arrested for knocking on apartment doors with a knife in each hand before making his way into an apartment and telling officers he is a “world famous wrestler” because Florida. Click Orlando
Fake it Till You Make It: A man was fired from his job at a marketing and web design company after a TikTok user exposed his video advertising a fake COVID-19 vaccine card business because Florida. Axios
Basis Points – A candid look at the economy, real estate, and other things sometimes related.
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