What I’m Reading
Easing Up? There are some signs of major softening in the trucking market over the past several weeks, with volumes slowing down and prices easing. Importers of durable goods over-ordered last year, when everyone was particularly stressed about supply chains, and whether there would be goods on the shelves for Christmas. Now some of that activity appears to be cooling off. Bloomberg
Slow Motion Crash? Two years after the initial covid outbreak, vacancy rates continue to climb in major office markets around the country, taking a toll on property performance. Barclays analysts noted last week that the share of office mortgages that have been assigned to either “watchlists” of loans showing signs of being in trouble, or “special servicing,” where loans with missed payments are sent, has hit more than 21%. That’s the highest since the financial crisis. Axios
Broader Net: A new breed of property firms is buying up buildings occupied by gas stations, doctors’ offices and corner grocery stores. They see an opening because big asset managers typically avoid these properties, which they consider risky. Wall Street Journal This is a trend that I believe will continue so long as we remain in an asset-starved environment relative to the amount of capital allocated to be invested in real estate.
Lopsided: The employment economy – measured by the ratio of openings to hires – continues to sit out of balance and isn’t showing signs of improvement yet. Bonddad Blog
Brave New World: The ability to lease apartments directly from social media is coming as development of new marketing tools and applications heats up. Globe Street
Chart of the Day
Is this representative of businesses switching to a just in case inventory management model or a sign of a building glut?
Source: Bloomberg
WTF
Just Happy to See You: A 30-year-old US man’s attempt to smuggle 52 reptiles including 43 horned lizards and nine snakes at the San Ysidro border was foiled as Customs and Border Protection (CBP) officers nabbed him. The Indian Express
Stinking Gun: A dog poop stain helped police link a suspect to a violent armed robbery because Florida. NBC 6
Basis Points – A candid look at the economy, real estate, and other things sometimes related.
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