What I’m Reading Headache: Percentage rents are likely to have staying power for retailers even after the pandemic subsides. However, As omnichannel sales strategies grow more popular, the breakdown between online and brick-and-mortar stores is becoming blurry, making it difficult to establish what sales should be included in the percentage rent...
October 1st – Cashing Out
What I’m Reading Cashing Out: A new report by Trepp indicates an opportunity for homeowners to use sale-leaseback structures to pull equity out of their homes without having to move. This would allow equity-rich but cash-poor home owners who have been hit by the pandemic-induced recession a way to avoid foreclosure...
September 30th – Misleading
I’m back! Spent the last week RV camping on California’s Central Coast. It was a lot of fun but good to be back in the saddle. What I’m Reading Misleading Metrics: The article from my interview with Globe Street’s Erika Morphy about sponsor overreliance on cash on cash returns as a...
September 21st – Still Flowing
One Big Thing Still Flowing: CMBS originators and debt funds have pulled back during the pandemic. However, the real estate capital markets have largely continued to function, thus far avoiding the near-complete shutdown experienced during the Great Financial Crisis and preventing a major crash in valuations. Real Clear Analytics This brings to mind...
September 18th – Open to Interpretation
What I’m Reading Open to Interpretation: From state to state, and even judge to judge, a simple-sounding order by the C.D.C. to halt evictions through the end of the year due to the pandemic is being enforced in a far-from-uniform manner. The New York Times Full Picture: NMHC’s rent payment tracker for September...
September 17th – Aaaand Scene
What I’m Reading Aaaaand Scene: The cameras are rolling and Hollywood’s film industry is slowly coming back to work, That is bringing intense demand for studio space, new interest from investors and higher rental rates. Commercial Observer Losing Hope: As the pandemic recession continues, many small and midsize U.S. banks find themselves buried...
September 16th – Meat on the Bone
What I’m Reading Meat on the Bone: A wave of refinancing has led to a mortgage boom in 2020, testing the limits of lender origination capacity. However, there is still a lot of meat left on the bone. According to a report this week by data and analytics firm Black Knight, there...
September 15th – Building Inferno
What I’m Reading Building Inferno: Three million of California’s 12 million homes are at high risk for wildfires per CalFire. That designation hurts home values, which in turn increases mortgage default risk, according to research by the Commodities Futures Trading Commission (CFTC). If fires continue to cause more damage and insurance...
September 14th – Opening Up
What I’m Reading Opening Up: The Securities and Exchange Commission modified its definition of “accredited investor: in August, changing who is allowed by law to invest in private securities offerings. The new definition is less restrictive, which will likely open up an opportunity for more investors to participate in private real...
