What I’m Reading
Walking Away: Trepp researchers parsed special servicer notes on distressed real estate backed by CMBS loans and found a substantial number of borrowers are willing to give assets back to lenders if defaults aren’t cured. As you can probably imagine, most of these are in the hotel and retail space. That being said, I would anticipate more office borrowers as time goes on. Trepp
Evolution: The future is here when it comes to warehouse developers embracing technological advancement. As consumers demand faster deliveries, warehouse operators are making investments to keep up. NAIOP
You Hate to See It: Disgraced WeWork founder Adam Neuman has lost his $185MM consulting gig with his former company after violating the terms of the agreement. Bisnow
Behind the Scenes: Ousted Uber founder and former CEO Travis Kalanik is betting big on ghost kitchens, investing over $130MM in real estate for the venture. (h/t Jeff Lemieux) Wall Street Journal
Gold Rush: Amid the pandemic and social unrest, weary city dwellers are decamping to sparsely populated Montana in record numbers, sparking a real estate boom. Washington Post
Decline: Pandemic fallout gets most of the headlines these days – and rightfully so. However, a longer-term threat is on the horizon. As the human race transitions from a burgeoning, exploding species to a static or shrinking one, economies around the world will come under significant strain. Japan offers a cautionary tale. Bloomberg
Chart of the Day
Long-dated Treasury yields are on the rise amid concerns about oversupply.
Source: The Daily Shot
WTF
Tis The Season: A man was arrested for (allegedly) striking his girlfriend with a pumpkin and its innards during a 2 AM confrontation in the couple’s apartment because Florida. (h/t Steve Sims) The Smoking Gun
Tax Dollars at Work: New York is building a new prison that will cost a whopping $2.6MM PER CELL to construct. At what point do you consider simply housing convicts in luxury apartment buildings? As absurd as it sounds, it would cost substantially less. The Real Deal
Basis Points – A candid look at the economy, real estate, and other things sometimes related.
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