January 19th – In Limbo

Programming Note: I’m going to be at the IMN Winter Forum On Real Estate Opportunity & Private Fund Investing the rest of this week and will probably be posting a bit less.  Also, hit me up if you are attending.

What I’m Reading

Limbo: The EB-5 regional center program has still not be reauthorized after being allowed to lapse last summer.  Lawmakers are facing building pressure to reauthorize as thousands of green card applicants remain in limbo with projects stalling out.  Bisnow

Not Out of the Woods: Trepp’s overall CMBS delinquency rate increased for the first time in 18 months.  The move was driven by issues in the office sector which is still facing work from home headwinds.  Over the next five years, 42% of the full-term interest-only loans for office properties in the Trepp dataset are going to mature, totaling $54 billion. Trepp

Looming Threat: If omicron continues to spread in China and leads to wider-spread lockdowns, it could cause the mother of all supply shocks.  This is the second time that I’ve posted about this in a couple of weeks.  IMO, it is a risk that is receiving less attention than it should.  Bloomberg

Heist: As if the supply chain didn’t need another headwind, rail package theft has become such a large problem in Los Angeles that Union Pacific is considering bypassing the region altogether.  The problem is largely tied to DA George Gascon’s refusal to prosecute theft.  LA Times

Dropping Out: As college enrollments drop, some colleges are feeling the pinch of oversupply in the student housing sector.  Globe Street

Chart of the Day

Nothing drives lease renewals like having friends in a community.  

Image

Source: Bobby Fijan

WTF

False Idol: People are lining up to worship a calf born with three eyes and four nostrils because India.  Daily Star

Piling On: The California legislature is considering a bill that would roughly double the state’s already high tax collections, to fund a first-in-the-nation single-payer health-care system. California Policy Center

Basis Points – A candid look at the economy, real estate, and other things sometimes related. 

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