What I’m Reading
Long Road Back: COVID-19 has resulted in a near-total halt in business travel. Beyond the blows to airlines, hotels, travel agents and rental-car companies, the sharp drop in business travel is rippling through whole ecosystems of related commerce, including airport shops, downtown bars and restaurants, construction companies building convention stages, entertainers, taxi drivers and aircraft-parts manufacturers. The worst part is that industry surveys indicate that the impact will last for years after the pandemic is over. Wall Street Journal
Plunge: Values are falling across regions and property sectors, based on CMBS servicer loan data, according to Trepp. On average, values fell 36% for lodging properties and 41.5% for retail properties. For its analysis, Trepp looked at 335 hospitality loans and 159 retail loans issued after the Global Financial Crisis that had new appraisals completed since March 2020 and where values were different than at securitization. Trepp
Step By Step: The unwinding of Libor still casts a shadow over financial markets but steps are being taken that will make it a bit easer to handle. A new protocol has been put into place that allows Libor to be yanked out automatically and another rate swapped into its place — provided counterparties accept legal terms governing the industry. Bloomberg
Pulling Ahead: In a post pandemic world, the office markets of the Sunbelt and Mountain West are holding up much better than those in coastal gateway markets. Globe Street
Dispersed: Silicon Valley has become more an industry than a physical place Initialized
Chart of the Day
Markets that are dominated by employment that doesn’t lend itself to remote working are outperforming those that aren’t.
Source: Costar
WTF
That’ll Show Them: A man stole a tow truck as revenge for his car getting towed because Florida. Fox 29
Joy Ride: A naked man stole and wrecked a police car because Florida. NBC Miami
Basis Points – A candid look at the economy, real estate, and other things sometimes related.
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