What I’m Reading
Stuck in Place: Despite an incredibly tight apartment market, Los Angeles won’t allow rent hikes for tenants in rent-stabilized units – which accounts for approximately 75% of inventory – until at least 2023. This despite costs rising sharply, including labor and materials for building repairs as well as city fees for trash pickup. Los Angeles Times
Swamped: LA – which has often been touted as an office market bright spot – has nearly 25% of it’s inventory available for lease. That’s the highest level in more than a decade and leasing was down 34% from 2019. Commercial Observer
Over the Skis: Instant delivery startups are burning through cash at a torrid pace. As a result, several are testing revisions to their business model, including longer delivery windows that could allow the startups to pack in more orders per trip. The Information
Flooding the Zone: Declining populations in many cities means more people are moving to fewer places where affordability will get worse, not better. Bloomberg
Burn Off: Fannie Mae is forecasting that concessions will decline throughout 2022, leading to sticker shock for many tenants. Globe Street
Chart of the Day
Cumulative excess savings is still off the chart.
Source: The Daily Shot
WTF
Temper Tantrum: A pregnant employee was kicked in the stomach after a drive-thru customer at a Long John Silver’s in Indiana became “irate” upon being told that the restaurant would not sell a single hush puppy. The Smoking Gun
When You’ve Gotta Go: A woman was arrested for allegedly urinating and defecating in front of a middle school because Florida. Sebastian Daily
Basis Points – A candid look at the economy, real estate, and other things sometimes related.
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