What I’m Reading
In the Cold: US real estate investors like Hines and Morgan Stanley have ridden out ruble devaluations, financial crises and the economic sanctions that followed Russia’s 2014 annexation of Crimea to chalk up positive returns on their Russian real estate portfolios. Now they are facing calls to divest with the prospect that there may not be any actual buyers out there, even with the ruble in rubble. Wall Street Journal
Shelter in Place: Recent data from Redfin shows that the typical US home changes hands every 13.2 years. This number has risen for a decade – from 10.1 years back in 2012 – but actually declined in 2021 thanks to pandemic-spurred relocation to more affordable areas. Redfin I expect this number to begin increasing again – possibly substantially – with interest rates rising and prices at an all time high.
Hot Spots: Apartment construction in the US is booming and some submarkets in Austin, Nashville and Phoenix are seeing inventory increase 30% or more. RealPage
Hub and Spoke: Grocery giant Kroger continues to push its e-commerce offerings, expanding its last mile delivery network in the sunbelt. Commercial Property Executive
Squeezed: From oil to wheat to palladium, the Russian invasion of Ukraine has thrown commodity markets soaring, spurring a virtual world war in commodities. The result will be much higher prices in the developed world and potential political unrest from food shortages elsewhere. Disciplined Systematic Global Macro Views
Chart of the Day
One of the wildest chart I’ve seen. Gazprom corporate debt. The bond was due Monday. Traded at 0.5% yield for a year. Crashed to 50% of par. Shocked the market by being repaid at par when due. Buyers who stepped in and bought at 50% got PAID.
Source: Johannes Borgen
WTF
Mother of the Year: A woman left her infant daughter in an unlocked car for two hours while she gambled in a nearby arcade because Florida. The Smoking Gun
Snack Time: A teacher is being accused of biting a student after a dispute over a jar of pickles because Florida. WFLA 8
Basis Points – A candid look at the economy, real estate, and other things sometimes related.
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