What I’m Reading
Behind the Curve: As expected, eCommerce orders surged to previously unseen levels this Black Friday and Cyber Monday. It got to the point that UPS put limits on pickups at several large retailers in an effort to not overwhelm their systems, despite knowing that this was coming. Wall Street Journal It is difficult for me to read this and draw any other conclusion than that our logistics infrastructure still has a ways to go and is underbuilt. TL;DR this is bullish AF for warehouse.
Tis the Season: Record online shopping on Black Friday and Cyber Monday is causing a major headache for apartment owners whose mailrooms can’t handle the increase in boxes. Bisnow
Fatal Blow? In yet another example of COVID amplifying existing trends, Warner Brothers announced it would stream all of its 2021 movies on HBO Max at the same time they hit theaters. The company is saying its a one year deal but if you believe that, I have some oceanfront land in Arizona to sell you. While, this sort of action won’t kill off all movie theaters, its difficult to see how it won’t lead to a substantial contraction. HBO Max costs around $15/month or $12/month if you subscribe for a year. That’s less than one move ticket in a high price market. If you go with a family of four and factor in refreshments, the cost could easily be higher than the annual subscription option. Some people love the theater experience and continue to go but a lot of people may settle for the at home option with better – and less expensive – refreshments for all but the most theater-worthy films. The only remaining question is what to do with all of the defunct theater space. Variety
Bucking the Trend: Despite recent increases in treasury yields, mortgage rates have fallen to a new low of 2.71%. Housing Wire
Showing A Pulse: While volume is still declining, institutional investors are starting to show increased interest in suburban office assets over CBD properties. NREI
Chart of the Day
Pretty much anything suburban is outperforming it’s city equivalent, perhaps none as dramatically as hotels.
Source: Jonathan Litt
WTF
Jackpot: A man walking on the beach the day before Thanksgiving stumbled upon almost 70 pounds of cocaine that washed up on the shore because Florida. Miami Herald
Secret Santa: A man was arrested for leaving feces and obscene notes in mailboxes because Florida. First Coast News
Basis Points – A candid look at the economy, real estate, and other things sometimes related.
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