What I'm Reading Upward Spiral: Employment is strong and rents are rising quickly. People want to buy homes, in part to protect themselves against rising rents. The obvious answer is to build more homes. However, this is easier said than done thanks in part to a shortage of raw materials...
February 11th – Coming in Hot
What I'm Reading Coming in Hot: YoY inflation is now 7.5%, the highest rate since 1982. As expected OER, which tends to be sticky turned sharply higher. This seals the deal for a 25 basis point increase at the Fed's March meeting. It also increases the odds of a 50...
February 7th – Defying Gravity
What I'm Reading Defying Gravity: Apartment leasing is typically a seasonal business, with demand cooling with the weather in the winter months. That has not been the case in 2021 and thus far in 2022. Both Q4 occupancy and January occupancy increased for the first time in history, according to...
October 1st – Pointing Fingers
What I'm Reading Pointing Fingers: Frustrations are boiling over at the Ports of LA and Long Beach as freight continues to pile up. Truckers are pointing fingers at a lack of dock help to offload ships. Port officials are pointing to a struck driver shortage. The only thing that both...
September 16th – Under Pressure
What I'm Reading Under Pressure: CBRE's latest cap rate survey showed compression almost across the board with the most desirable product types - multifamily and industrial - in the best locations trading at average cap rates that start with a 3. CBRE I suppose that at a certain point, the...
May 19th – Center of Gravity
What I'm Reading Center of Gravity: While the Biden tax plan roiled markets over the past few weeks, corporate executives and lobbyists and lobbyists are confident that centrist Democrats in both the Senate and House will ultimately kill almost all of the proposed increases. Politico Burn Out: Mortgage demand has...
May 4th – Deep Freeze
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...
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...
March 25th – Compression
What I'm Reading Compression: With Class A cap rates at incredibly low levels, industrial real estate investors are increasingly targeting well-located B and C product to generate higher returns. According to a new report by Cushman and Wakefield, average cap rates for Class A properties declined by 33 basis points...
February 26th – Mind the Gap
One Big Thing Treasury yields are soaring of late so of course a lot of the conversation around commercial real estate in general and multi-family in particular is when cap rates will begin to reflect this. I have a bit of a contrarian take that I outlined on a Twitter...