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...
September 14th – Chop Shop
What I'm Reading Chop Shop: Single family rental platforms are increasingly allowing investors to buy shares in homes for as little as $10. The Real Deal IMO, this trend is a governance nightmare waiting to happen. Small investors would be far better served buying shares in Invitation Homes or American...
September 13th – Safe Harbor
What I'm Reading Safe Harbor: There is a growing interest in marina investment where cap rates have stayed relatively constant over the past year while demand for slip space has soared along with new boat sales. This fits in nicely with RanchHarbor's thesis that real estate used to store discretionary...
September 10th – Putting This to Bed
What I'm Reading Putting This to Bed: In total, 1 million forbearance plans will expire between now and the end of 2021. There is a vocal contingent that has been predicting a wave of foreclosures for months. However, I am virtually certain that this won't happen as almost all of...
September 7th – Not So Fast
What I'm Reading Not So Fast: The Biden Administration's $3.5 trillion budget proposal is in limbo after West Virginia Senator Joe Manchin came out strongly against it in a Wall Street Journal OpEd, raising inflationary concerns. Wall Street Journal Speed Bump: The US construction industry's recovery from the lows of...
September 3rd – More Help Wanted
What I'm Reading Help Wanted: Labor shortages are helping to keep more homes from being built, making housing even less affordable. The problem does not appear to be going away anytime soon. The Economist Surprising Result: About half of US states ended enhanced federal unemployment benefits early. So far, they...
August 30th – Overloaded
One Big Thing Overload: Harvard University's "The State of the Nation's Housing 2021" report found, unsurprisingly that the nation's affordable housing crisis is getting worse. What is perhaps more troubling is that current economic and market conditions indicate that there is no end in sight. Globe Street That brings us...
August 24th – Permanent Decline?
What I'm Reading Shots Fired: Green Street is predicting that office occupancy may never return to pre-pandemic heights and that office NOI will likely not outpace inflation over the next five years. Green Street is predicting a 15% reduction in office space demand in the US, a figure the firm...
August 20th – Lake Reads Week in Review
What I'm Reading Flipped: Some of the most affordable rental markets in the US are about on pace to become some of the most expensive thanks to skyrocketing rents. This will eventually become a headwind to economic growth as residents in some of the most productive and quickly-growing cities will...
August 3rd – Packing Heat
What I'm Reading Packing Heat: The packaging industry is growing as soaring ecommerce adoption has led to higher demand for boxes. As a result, demand is increasing for industrial space used to produce and distribute packaging. Fast Company Waiting Game: Home builders are intentionally restricting the sale of new homes...