What I’m Reading
Chop Shop: Fractionalization, which has been used by Wall Street for years to mix and match intricate securities from commercial real estate to agriculture futures has come to main street. The latest hot financial trend has investors buying tiny pieces of everything from real estate and cars, to art, fine wine and memorabilia. Vox
Looking Inward: Foreign investors are following in the footsteps of their domestic counterparts, focusing on secondary markets with strong fundamentals over their traditional focus of coastal core. Commercial Observer
Watch List: If the supply chain bottleneck continues to build and put downward pressure on both construction activity and manufacturing, it could lead to a recession. Bonddad Blog
Base Effects: In a surprise twist, suburban office has achieved the greatest price growth at 14.8% of all CRE asset classes over the last year, besting investor favorites multifamily and industrial. However, much of this is due to base effects as the suburban office values declined in the early days of the pandemic. Also, unlike price gains seen in multifamily and industrial, suburban office appreciation is not well supported by rent growth. Globe Street
King of the Hill: The Irvine Company’s Donald Bren is still the richest American real estate billionaire according to Forbes – and its not particularly close. Forbes
Chart of the Day
The Consumer rotation back to service consumption is well underway.
Source: The Daily Shot
WTF
Snack Time: A viral video from somewhere in South Carolina shows a very large alligator devouring a much smaller 6-foot alligator. New York Post
Senior Moment: A 90 year old man was arrested for punching his next door neighbor in the face during a dispute about landscaping because Florida. The Smoking Gun
Basis Points – A candid look at the economy, real estate, and other things sometimes related.
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