One Big Thing There has been a lot of COVID news to digest in recent days so I thought it would be helpful to put together a quick summary of what is going on. On the infection side, things are undeniably bad and getting worse. We have now seen over 11...
November 16th – Such a Tangled Web
What I’m Reading Tangled Web: As malls continue to struggle, their financing structures – which have only grown more complex over time – are making restructuring particularly challenging. This is perhaps the biggest downside of using CMBS, especially when layered with other forms of financing. When you borrow from a bank...
November 13th – Pile Up
What I’m Reading Pile Up: Corporate tenants put a record 42 million square feet of space on the office market in the second and third quarters, according to data firm CoStar Group Inc. That increased the total sublease space in the U.S. to roughly 157 million square feet, or 1.7% of...
November 12th – Canary in the Coal Mine
What I’m Reading Canary in the Coalmine: Office REITs have underperformed dramatically this year but their beat-down shares may be a good under-the-radar way to play the vaccine trade. However, upside may be capped by behavioral headwinds. P.S. Shouldn’t need to say it but this is IN NO WAY investment advice. MSN...
November 11th – Changing of the Guard
What I’m Reading Changing of the Guard: Office, hospitality and retail, three of real estate’s most institutionalized sectors, are facing long-term structural headwinds. At the same time, formerly-niche sectors like cold storage, self-storage, medical office and data centers are getting more institutional attention thanks to their resiliency in the face of...
November 10th – Shot in the Arm
One Big Thing Like me, most of you probably woke up yesterday morning to the Pfizer COVID-19 vaccine news from the AP: Pfizer Inc. said Monday that its COVID-19 vaccine may be a remarkable 90% effective, based on early and incomplete test results that nevertheless brought a big burst of optimism...
November 9th – Thou Dost Protest Too Much
One Big Thing Its no secret that office landlords – especially those in expensive coastal markets – are struggling. Vornado Realty Trust (VNO) is one of the worst positioned for the post-pandemic world with the vast majority of its holdings in NYC. Vornado’s recent earnings sucked – and missed already-low...
October 6th – Ridin’ High
What I’m Reading Ridin’ High: While the general election may still not be officially settled, one clear winner has emerged: recreational marijuana. Ballot measures passed in New Jersey, Arizona, South Dakota and Montana to legalize the adult use and sale of recreational cannabis, while Mississippi and South Dakota (in a separate...
November 4th – Time Warp
One Big Thing: I wrote a year in review (or at least the first 10 months) piece that the Mann Report is running as a cover feature. Here’s an excerpt. 2020 was the year when time both accelerated and stood still. From a purely human perspective, crises and trauma are known...
November 3rd – Bounce Back
What I’m Reading Bounce Back: Apartment demand rebounded strongly in the third quarter outside of high-priced gateway markets. The rebound helped to stabilize the multifamily market and prevented asking rents from declining as much as would have been expected considering the historic decline in economic performance in the second quarter. Yardi...