What I’m Reading
Long Shadows: Office distress has yet to really materialize. However, the risk of loan maturitites and major tenant lease expirations are casting a shadow over the sector. Roughly $27.7B of the $145B CMBS office loans Trepp tracks are set to mature by 2022. What’s more, nearly 35% of the total loan pool, or $50B, has exposure to a major tenant with a lease that will expire by the end of 2022. Trepp
Critical Condition: CMBS foreclosures on hotel properties are on the rise with some large cities seeing more than 50% of their hotels being placed in special servicing. Bisnow
House Hunting: A new $1 billion JV between Invitation Homes and Rockpoint is the latest example of institutional capital piling into the single family homes for rent space. Wall Street Journal
Reorganizing: Chapter 11 bankruptcy filings have – unsurprisingly – surged 33% in 2020. Globe Street
Metamorphosis: Investors and developers are looking to warehouse conversions in a bid to take advantage of the lower cap rates and strong rental growth of the logistics sector. JLL
Well Deserved: Bloomberg’s Matt Levine, the world’s best finance journalist got a 2,400 word feature profile in the New York Times. New York Times
Chart of the Day
Further signs of normalizing in China.
Source: @SoberLook
WTF
Roommates With Benefits: A survey by Match group found that 1 in 4 singles who had sex during lockdown did it with their own – previously platonic – roommate. New York Daily News
Whatever It Takes: A teen had to be rescued by firefighters after getting stuck in a storm drain that he climbed in to retrieve a dropped cell phone because Florida. TampaBay.com
Basis Points – A candid look at the economy, real estate, and other things sometimes related.
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