What I'm Reading Deep Freeze: If the Biden tax plan is passed in its entirety, it would likely result in an initial rush to sell properties most impacted before the changes take effect, followed by a substantial drop in the number of property sales and less market liquidity. Commercial Property...
May 3rd – Chopping Block
What I'm Reading Chopping Block: The credit tenant net lease sector will be particularly hard-hit if the 1031 exchange is eliminated as proposed in the Biden tax plan. Globe Street Passed Along: Skyrocketing lumber prices have added $36k to the price of new homes, according to the NAHB. Housing Wire...
April 30th – Up, Up and Away
What I'm Reading It's Official: The Biden tax proposal includes getting rid of the 1031 for gains of over $500k, taxing carried interest as earned income and eliminating the stepped up basis. Obviously, this is the first offer in a negotiation but if even a small amount of these proposals...
April 29th – Liftoff
What I'm Reading Liftoff: Apartment List's national rent survey for May showed its largest monthly jump going back to 2017 as coastal markets rebound and midsized markets that soared in 2020 show few signs of slowing down. This further backs up the story we posted yesterday about OAR picking up. ...
April 28th – Blind Spot
What I'm Reading Triple Threat: The worst-case tax scenario for real estate would be a simultaneous end to the 1031, basis step-up on death and doubling of capital gains. IMO, elimination of 1031 and doubling of capital gains would lead to far less transaction volume and increase the desirability of...
April 27th -The Great Migration
What I'm Reading The Churn: California is undergoing a major population shift, with coastal residents relocating to more inland locations in search of more space and a lower cost of living. Washington Post Its Time: Americans overwhelmingly believe that marijuana should be legal for recreational or medical use in the...
April 26th – Diamond Hands
One Big Thing One universal rule that becomes even more apparent when raising young children is incentives - whether positive or negative - drive everything. Tell a kid to clean her room and you may get an attitude. Promise her a reward of some sort if its clean for a...
April 23rd – Dead on Arrival
What I'm Reading Dead on Arrival: $12.3 trillion of economic stimulus over the past year effectively killed off the US credit default cycle despite the lingering pandemic, resulting in the lowest-rated companies enjoying their cheapest borrowing costs in history. Bloomberg Blowback: The Consumer Financial Protection Bureau announced an interim rule...
April 22nd – Sleight of Hand
What I'm Reading Sleight of Hand: WeWork is once again attempting to go public, this time via SPAC merger. However, the co-working company's aggressive projections and unconventional financial metrics are once again raising investor concerns about its viability. Globe Street More of the Same: When it comes to people moving during...
April 21st – Wait and See
What I'm Reading Wait and See: The office market is in for a long period of adjustment as tenants take a non-committal, wait and see approach to what the future will hold while scaling back gradually on their footprint. AVC Anti Establishment: Americans have unprecedented access to marijuana as numerous...