What I’m Reading
Strings Attached: CMBS borrowers that were granted initial forbearance in Q2 2020 are requesting another round of debt relief from servicers. However, even if granted this relief is likely to come with more stringent parameters such as additional equity contributions and personal recourse. Those who refuse or don’t qualify will likely send back the keys, meaning that distressed activity will likely increase in 2021. PERE
Help on the Way? A $908 billion bi-partisan stimulus bill hit Capitol Hill earlier this week. While it is doubtful that the bill will pass in this legislative session, it includes direct assistance for renters, a good sign for landlords and tenants when the new Congress is seated in January. (h/t Steve Sims) Globe Street
Laissez Faire: Conservative Oklahoma was a late entrant into the world of legal cannabis. However, a libertarian approach with low costs and few barriers to entry has set off a marijuana boom and nearly wiped out the state’s illegal trade. This stands in stark contrast to states like California and Colorado where cannabis is fully legal but governed by a complex web of bureaucratic red tape that has driven prices up and allowed illegal operations to flourish. (h/t Steve Sims) Politico
City Slickers: Big city buyers are purchasing houses in rural markets, leaving small towns struggling to deal with the influx of new residents. Bloomberg
Death Star: Amazon accounted for a whopping 82% of all e-commerce leasing in the UK in 2020 and 30% of the total logistics market. That this level of dominance could be achieved in a market as large and diverse as the UK is shocking. Bisnow
Chart of the Day
Residential construction spending is booming while non-residential construction spending tanks.
Source: @QuillIntel
WTF
Can You Spot the Irony? A New Orleans swingers party became a superspreader event after 41 attendees tested positive for COVID. If you are are a fan of dual meanings, this is as good as it will ever get. (h/t Matt Cohen) The Washington Post
Beyond Help: A bald Kentucky man caused a disturbance at a salon after he asked a worker if she “had a product to bring his hair back and she told him no,” according to police. The Smoking Gun
Basis Points – A candid look at the economy, real estate, and other things sometimes related.
Visit us at RanchHarbor.com