What I’m Reading
Safety First: Proligis’s Q3 earnings call characterized industrial demand as being in “panic mode” with tenants showing an insatiable appetite for space. Bisnow A primary driver here is the fundamental shift in the way that retailers handle their supply chain management. Space was already tight in the pre-pandemic era with tenants operating on a just-in-time distribution model that focused on minimizing inventory. Now those same tenants are operating a just-in-case model which means much more inventory – and requires much more space.
Different Approach: Lennar is partnering with a construction tech company called ICON to build the world’s largest neighborhood of 3D-printed homes outside of Austin, Texas. The homes will be priced similar to other Lennar neighborhoods of similar spec level in the area. Globe Street The homebuilding industry is notoriously slow to innovate so its great to see a big builder taking this sort of initiative. Will be interesting to see how the end product turns out and if it is a viable solution to the growing labor shortage.
Low Hanging Fruit: With rents soaring in markets around the US, rent control measures are once again becoming popular – despite the fact that implementation almost always makes the affordability problem worse. Mortgage Bankers Association
Slowing Down: August data provided by the S&P CoreLogic Case-Shiller Indices, suggests that the growth in housing prices, while still quite strong, may be beginning to decelerate. Bonddad Blog
Taking Control: Retail giants like Amazon, Walmart, Target, Kroger, and Dollar General are increasingly opting to purchase or build their own distribution centers rather than lease from others. The move gives the retailers more control over their supply chain. Wall Street Journal
Chart of the Day
2021 is on pace to end with for sale housing inventory at a record low.
Source: Altos Research
WTF
Spammed: A hiker who was lost for 24 hours ignored repeated calls from rescuers because they came from an unknown number. NY Post
Vertical Integration: The owner of a drug rehab facility was arrested for selling fentanyl to a police informant inside of her facility because Florida. The Smoking Gun
Basis Points – A candid look at the economy, real estate, and other things sometimes related.
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