What I'm Reading Misplaced Blame: The Biden administration has pushed the Ports of LA and Long Beach to begin fining carriers who don't move their containers from the port complexes quickly enough. By this logic, the problems are apparently not a massive backlog and capacity constraints but rather that the...
October 27th – Between a Rock and a Hard Place
What I'm Reading Between a Rock and a Hard Place: The pandemic has highlighted how many office buildings need to be renovated in order to fit the needs to today's workers and companies. However, the supply chain crisis and labor shortage means that it has never been more expensive to...
October 26th – Cooling Off?
What I'm Reading Cooling Off? Some of the hottest housing markets in the country are showing signs of slowing down with inventory increasing and more sellers reducing asking prices. Bloomberg The article specifically talks about Boise - a rental market that we are bullish on (we recently closed our second multifamily...
October 20th – Max Capacity
What I'm Reading Max Capacity: Prologis, the world's largest logistics warehouse operator has announced that their facilities are effectively full. Freight Waves This begs the question: even if (HUGE IF) running port operations 24/7 increases capacity, where do all of those goods actually go once they leave the ports complexes...
October 15th – Leveling Off
What I'm Reading Shrug it Off: Industrial rents are rising at such a rapid clip that developers aren't sweating spiking development costs. Bisnow Easing Up: While demand for apartments will likely remain substantially above its historical norm, it seems likely that absorption volume will ease somewhat in 2022. This is...
October 14th – Long Shot
What I'm Reading Long Shot: Zelman and Associates released a contrarian residential market call, claiming that today's tight housing market is already getting overbuilt thanks to the downward trajectory of population growth per the 2020 Census. CNBC Other analysts, like Jay Parsons of RealPage were quick to jump on this...
October 8th – Substitution Effect
What I'm Reading Substitution Effect: Construction material shortages are forcing homebuilders and contractors to turn to substitutes and hunt for alternative suppliers as they rush to meet high demand for new housing. However, its a double-edged sword and swapping out materials to minimize delays can add to costs. Wall Street...
October 5th – Honey Badger
What I'm Reading Staying Remote: PriceWaterhouseCoopers is freeing the entirety of its U.S. workforce to work remotely full-time, a decision that will impact 40,000 client services workers. The Real Deal In response, the CMBS markets did their best honey badger impression. Will be interesting to watch this one play out: ...
September 27th – Expect Delays
What I'm Reading Expect Delays: NMHC's latest Construction survey found that a whopping 98% of multifamily developer respondents reported being impacted by a lack of materials, the highest share since the survey began. In addition, 83% of respondents reported delays in permitting and starts, 72% reported deals being repriced by...
September 21st – Logjam
What I'm Reading Logjam: The Los Angeles / Long Beach port logjam has enough containers to cross half of the US if laid end-to-end. Amazingly, the problem is getting worse. The average wait is currently 8.7 days compared with 6.2 in mid-August, according to L.A. gCaptain Respite: The producer price...