What I’m Listening To
AJ Osborne had Scott Ramser and I on his Self Storage Income Podcast to discuss our recent acquisition of Adult Toy Storage in Altamonte Springs, FL. Scott gives a great overview on how to reposition a large RV and boat storage facility and the interview gave me a chance to discuss our investment platform. Plus find out what happens when a deal name is so spicy that it keeps landing emails in lender and attorney spam folders. Player FM
What I’m Reading
War Chest: Private equity real estate investors have continued to raise money faster than they can spend it. Preqin reports that dry powder is up 11% from a year ago and 57% since the end of 2019. Bloomberg
Boom Times: The apartment market went on an epic run in 2021 with lease rates soaring and cap rates compressing. Analysts expect things to continue in 2022, albeit at a less torrid pace. That being said, one risk factor is that rents rise to such a high level that people begin moving back in with roommates or family, causing household formation to contract. Wall Street Journal
Priced Out: The share of first time buyers in the housing market fell to 26%, the lowest level since 2014. A lack of supply and high prices will continue to make it difficult for first timers to access for-sale housing. IMO, this will put persistent upward pressure on rents as marginal buyers remain renters. Globe Street
Big Wave: The US will need roughly 1 billion more square feet of warehouse space by 2025 as the ecommerce share of the leasing market increases from 35% to 50%. The Motley Fool
Mixed Signals: Housing is very unaffordable right now if you look strictly at prices. However, the picture looks substantially better once payments – driven by low mortgage rates – are taken into account. Calculated Risk
Chart of the Day
The apartment market is insanely tight.
Source: John Burns Real Estate Consulting
WTF
Snack Time: A tiger bit off the arm of a man who reached into its enclosure because Florida. The New York Times
Bait and Switch: A woman on a Delta flight found that the $3k worth of Christmas presents in her baggage had been replaced with dog food. NY Post
Basis Points – A candid look at the economy, real estate, and other things sometimes related.
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