What I'm Reading In the Spotlight: Non-traditional property sectors like manufactured homes, gaming, cold storage, healthcare and single-family rentals will likely be the top performing CRE assets in 2022. Globe Street Stretched Thin: Guest demand is back across a substantial portion of the hospitality industry. However, shortages caused by supply...
January 14th – Locked Down
What I'm Reading Locked Down: With Covid-19 flaring up across China, major manufacturers are shutting factories, ports are clogging up and workers are in short supply as officials impose city lockdowns and mass testing on a scale unseen in nearly two years. There have even been rumors of a potential...
January 13th – Much Ado About Nothing
What I'm Reading Much Ado About Nothing: Despite wild forecasts of an eviction tsunami when the federal moratorium ended, actual eviction filings are still 40% below their pre-pandemic historical average. Five Thirty Eight Also, told ya so. Emptied Out: Omicron is upending grocery operations across the entire supply chain. Staffing...
January 12th – Fueling Up
What I'm Reading Fueling Up: The pandemic has reduced interest in international investments for US-based asset owners. At the same time, foreign investors are showing an increased appetite for US, with 75% of respondents to a recent AFIRE survey indicating that they would increase their volume here in the next...
January 11th – Open House
What I'm Reading Open House: Supply chain issues are making it difficult for home builders to complete new houses, despite increased building activity. As a result, mostly finished units are often sitting for weeks, awaiting the delivery of items like garage doors and gutters. Wall Street Journal No End in...
January 10th – Misdirection
One Big Thing The following is not tax advice. There are several things that we can say definitively about disgraced WeWork co-founder Adam Neuman. Here are a few: He is a massive self promoter He is generally full of shit. Like it or not, he is one of the great...
January 7th – Poached
What I'm Reading Poached: Boise, Idaho has an interesting jobs dynamic that I suspect is playing out in other so-called 'Zoom towns' as well. Historically low local wages, coupled with a strong talent pool have made Boise a target-rich environment for coastal companies - especially in tech - looking for...
January 6th – The Long Game
What I'm Reading The Long Game: Private equity companies are transitioning their business models towards perpetual capital vehicles, and it is creating a lot of buying power in real estate. Globe Street IMO, this will be a particularly strong tailwind for assets with lower capex requirements like self storage (including...
January 5th – Stuck in Place
What I'm Reading Boxed In: Despite an incredibly tight apartment market, Los Angeles won't allow rent hikes for tenants in rent-stabilized units - which accounts for approximately 75% of inventory - until at least 2023. This despite costs rising sharply, including labor and materials for building repairs as well as...
January 4th – End of the Line
What I'm Reading Tick Tock: The window for banks to use troubled debt restructuring (TDR) is coming to an end. TDRs have been a way for lenders to modify a loan’s terms, because of a borrower’s financial or legal difficulties, and account for an impairment of value. Under the initial...