What I’m Reading
Backslide: Troubled real estate loans for the likes of retail and offices that saw payments get back on track after the 2020 crash are re-defaulting — signaling more pain for commercial mortgage-bond investors. This is occurring as commercial landlords who lost tenants during Covid are still having trouble re-leasing space, especially as businesses wait to determine their future needs and hold off on longer-term lease commitments. Bloomberg
Looters: An examination of the Paycheck Protection Program, or PPP revealed that fraudsters ended up with an estimated $80 billion or 10% of the total amount handed out. That’s on top of the $90 billion to $400 billion believed to have been stolen from the $900 billion Covid unemployment relief program. NBC News Great job everyone.
Rise of the Machines: Autonomous trucks could one day replace more than 90% of all highway trucking, which could have a profound impact on as many as 500,000 long-haul truckers, according to a new study from researchers at the University of Michigan and Carnegie Mellon University found. Axios This trend is also likely to drive demand for industrial outdoor storage. See Also: Demand for logistics help is soaring, but forklift operators and other skilled workers are in short supply. Robotic vehicles are one way that manufacturers and logistics companies can address labor shortages while running their operations more safely and efficiently. Axios
Parched: The Sierra Nevada snowpack, which accounts for 30% of California’s water supply, is at one of its lowest levels in 70 years at just 39% of its normal level. The Mercury News
Feedback Loop: The cost of building materials, which spiked by 40 percent last year, combined with a 50 percent jump in the cost of developable land and the rising costs of skilled labor, have made new industrial projects more expensive to develop than ever. This is creating an environment where less new product is being delivered, keeping supply low and pushing rents even higher. WeathManagement.com
Chart of the Day
Inflation is taking a toll on US real disposable income.
Source: The Daily Shot
WTF
Cat Burglar: A woman who was dressed like Cat Woman tried to rob a gas station convenience store because Florida. 7 News Miami
Basis Points – A candid look at the economy, real estate, and other things sometimes related.
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