What I’m Reading
Faceoff: Public employee unions (for) and commercial real estate companies (against) are spending a massive amount of money in the battle over prop 15, which would remove Prop 13 protections for most commercial real estate in California. The Sacramento Bee
Lifeline: Oil demand is still struggling to recover during the pandemic. However, trucking and freight is offering a bright spot, driven by e-commerce growth and companies re-stocking and re-building supply chains. Bloomberg
Negative Outlook: 59% of respondents in the 2020 DLA Piper Annual State of the Market Survey expect a bear market in commercial real estate for at least the next 12 months with recovery coming sometime in 2022. DLA Piper
Uncovered: Industrial outdoor storage refers to properties that mostly provide uncovered ground to keep items often needed by industrial users with other business nearby, from truck trailers to construction materials. It has become a hot investment space for institutional capital thanks to supply constraints (very few municipalities want more of it), surging demand from the logistics industry which needs yards to store trucks and containers, and low capital costs. Bisnow
Uneven Results: Apartment performance during the pandemic has been uneven, depending on ownership, location and asset size. Professionally managed buildings in suburban markets have performed well. Mom and pop buildings in more urban markets, not so much. Globe Street
Chart of the Day
This is fascinating.http://public.tableau.com/shared/QR5CKJ95P?:embed=y&:showVizHome=no&:host_url=https%3A%2F%2Fpublic.tableau.com%2F&:embed_code_version=3&:toolbar=yes&:animate_transition=yes&:display_static_image=no&:display_spinner=no&:display_overlay=yes&:display_count=yes&:language=en-GB&:loadOrderID=0
Also, it is amazing how much western markets have appreciated versus the US as a whole.
Source: Visual Capitalist
WTF
What a Way to Go: A Philippine police officer was killed during a raid on an illegal cockfight after a rooster’s blade sliced his femoral artery. (h/t Steve Sims) Yahoo News
NOPE: A rare two-headed snake was discovered when a pet cat and brought it into a family home because Florida. People
Basis Points – A candid look at the economy, real estate, and other things sometimes related.
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