What I’m Reading
Temporary Solution: The number of renters seeking short term (less than 6 month) lease arrangements when moving to new cities is way up this year. This suggests that the move away from urban markets may be more temporary than thought. Apartment List
Sweet Spot: Pent up demand, healthy balance sheets, increased allocations and the search for yield could make 2021 a banner year for commercial real estate investment performance. Duval and Stachenfeld LLP
Dual Purpose: The retail store of the future will double as a last-mile distribution center. The pandemic has only accelerated this trend. CBRE
No End in Sight: Sublease office space continues to pile up as tenants downsize and the work from home trend continues to build, unabated. NREI
Bloodletting: The ability to work remote has allowed wealthy people to flee high tax cities for less expensive locales like never before. Often times their businesses stay behind but the potential loss in tax revenues could blow a major hole in city and state budgets. Unsurprisingly, governments are responding by raising taxes further which in turn are driving even more high earning residents away. Bloomberg
Chart of the Day
The office market looks pretty bad everywhere but it is relatively less awful in the Sun Belt thanks to population and employment growth.
Source: Green Street
WTF
Extracurricular Activity: teacher is being investigated for watching porn while giving a Zoom class because Florida. CBS Miami
Poetic Justice: A burglar died when the window that he was trying to climb through closed on his neck because Florida. NY Post
Basis Points – A candid look at the economy, real estate, and other things sometimes related.
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