What I’m Reading
Turning Inward: Foreign investors in the US are changing their sights from trophy properties in a handful of gateway cities to secondary markets that are experiencing population and job growth as persistently low yields make it hard to meet return targets. Yardi Matrix
Same as it Ever Was: It turns out that the breakout cities in the COVID era that are now leading the economic rebound were already experiencing above-trend growth before the virus hit. The Wall Street Journal
Downward Pressure: A lack of supply on the market is prompting more investors to build new industrial properties. An extreme premium on cap rates for new buildings is providing a tailwind to this trend as well. Globe Street
Blowback: E-Commerce mega-warehouses tend to be smog hotspots thanks to trucking traffic. Now environmental agencies are pushing back. The South Coast Air Quality Management District in Southern California is leading the way here, enacting a new rule, affecting about 3,000 of the largest warehouses in the area used by Amazon and other retailers, requires operators to slash emissions from the trucks that serve the site or take other measures to improve air quality. New York Times
Out of Options: A pandemic plunge in Manhattan’s real estate tax revenue threatens New York City’s ability to finance everything from schools and hospitals to firefighters and police unless office workers return in force starting this summer, according to city officials. Bloomberg Tax
Chart of the Day
LOL’d that they still consider Austin a tertiary market but you get the idea of the shift that’s underway here.
Source: Yardi Matrix
WTF
Unexpected Visitor: An alligator that found its way into a fire station had to be removed by wildlife officials because Florida. Miami Herald
Surprise: A 43 year old woman was tased in the neck by her son who was upset that he couldn’t find his phone. To make matters worse, he did it on Mothers Day. The Smoking Gun
Basis Points – A candid look at the economy, real estate, and other things sometimes related.
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