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...
November 2nd – Lifeline
What I’m Reading One Big Thing: A couple of weeks ago, I wrote about how ESG trends are likely to provide a growing headwind for the office market in the coming years. Today, I’m going to focus on a different segment of the real estate market that I’ve followed closely for years: housing....
October 30th – On the Move
What I’m Reading On the Move: For decades, the share of Americans moving to new cities has been falling. The pandemic-induced rise of telework is turning that trend around. This is perhaps a silver lining in the chaos that is 2020. Axios Before the pandemic, the top 15 most expensive cities in the...
October 29th – Face Off
What I’m Reading Faceoff: Public employee unions (for) and commercial real estate companies (against) are spending a massive amount of money in the battle over prop 15, which would remove Prop 13 protections for most commercial real estate in California. The Sacramento Bee Lifeline: Oil demand is still struggling to recover during the...
October 28th – The Great Divide
What I’m Reading The Great Divide: A new report by Moody’s shows that the bid-ask spread between buyers and sellers of commercial real estate has continued to widen, with sellers seeking pandemic-induced discounts and buyers holding the line on pricing. This can continue for some time so long as liquidity remains...
October 27th – Stepping Down
What I’m Reading Stepping Down: One of the cornerstones of former VP Joe Biden’s tax plan is eliminating the inheritance of property at a stepped up basis. This could have substantial value implications for commercial real estate – especially if the eventual plan classifies death as an immediately taxable event –...
October 26th – Real Time
What I’m Reading Real Time: New tracking technology that allows landlords to dynamically set rental rates on a daily basis make multi-family a better inflation hedge than ever before. Globe Street Christmas is Cancelled: In yet another blow to holiday mall traffic (and gig employment), mall Santa’s are likely to lose their gigs...