What I’m Reading
Diverted: Money is pouring into real estate funds but investor strategies are different in the past. Historically, downtown office towers were prime targets for institutions, as the size of the assets allows them to deploy hundreds of millions of dollars at once. But now, the long-term stability of office assets has come into question as many office buildings remain less than half-filled, and investors are shifting their attention to other market segments. Bisnow
Thriving: Self storage is booming thanks to changes in migration patterns and evolving consumer behavior, largely due to the pandemic. Before COVID19 struck, the self storage sector was largely overbuilt and struggling to find its footing. File this one in the “you just never know how people will respond” category. Globe Street
Hot Spot: A cutthroat market defined by limited supply has investors pouring into startups that seek to streamline the home buying process. Housing Wire
Stressed Out: The drought in the western US is putting massive pressure on California’s beleaguered electrical grid. As reservoirs run dry, there’s been a significant drop in hydroelectric generation. Without enough water pressure to quickly turn turbine blades, there could be electricity shortages right when residents need it the most. The Verge The obvious way to help solve this problem is to build more clean, safe nuclear plants to reduce our carbon footprint while providing ample power to Californians. However, our politicians are so dogmatic in their views that they are doing the opposite and shuttering our remaining nuclear plants when we need them the most.
Downward Trajectory: The Trepp commercial mortgage-backed securities (CMBS) special servicing rate maintained its strong downward movement in June, declining for the 9th straight month. The only sector that didn’t fall on a month-over-month basis was office. Commercial Observer
Chart of the Day
The automobile market has lost its damn mind.
Source: Wall Street Journal
WTF
Spray and Pray: Police are searching for a man who injured 30-35 people by spraying a can of bear mace into a Bath and Body Works store before escaping with stolen candles because Florida. Tampa Free Press
Wedged In: A naked woman got stuck in the 8-inch gap between two buildings in California, prompting a bizarre two-hour emergency rescue. New York Post
Basis Points – A candid look at the economy, real estate, and other things sometimes related.
Visit us at RanchHarbor.com