What I'm Reading Stand Off: The industrial market remains extremely tight when it comes to occupancy and rent growth. However, transactions are slowing as the bid-ask spread between buyer and seller rise. Globe Street Haves and Have Nots: Remote work may be great for long time employees but it has...
July 1st – Scaling Back
What I'm Reading Scaling Back: As prices climb on restaurant menus and grocery-store shelves, some packaged-food makers see more Americans making meals at home to save money, while restaurant operators are changing their offerings to cope with increasingly price conscious consumers. Wall Street Journal Taking a Toll: Higher mortgage rates...
June 30th – Nudge
What I'm Reading Boxed In: Steeper borrowing rates and high prices in the housing market are leading many buyers to give up. That is welcome news for owners of single-family rental homes. Wall Street Journal Moment of Truth: A recession will either be the catalyst that forces employees back to...
June 29th – June Gloom
What I'm Reading June Gloom: CRE market participants are increasingly negative as capital market woes take a toll. RCLCO released a new report saying that sentiment of real estate professionals has slipped nearly down to the range the firm associates with market distress and recession. Globe Street Today's CRE market...
June 28th – Bid ‘Em Up
What I'm Reading Bid 'Em Up: An unattainably expensive housing market and record low vacancies have resulted in a once-unthinkable situation - bidding wars for rental units. NPR Kicking the Can: Rising rates will make it difficult for some borrowers on marginal properties to refinance maturing CMBS loans. Expect another...
June 24th – Pulling the Ripcord
What I'm Reading Pulling the Ripcord: Looking back, the non-bank mortgage lenders rushing to sell shares to the public last year was probably the peak of the business cycle. Since then, borrowing costs have doubled, the market has slowed to a crawl and the buyers of those IPOs are left holding...
June 23rd – Perfect Storm
What I'm Reading Perfect Storm: Supply chains are experiencing a massive bullwhip from the COVID economy and have resulted in a build up in inventory levels. At the same time, a slowdown in consumer spending caused by inflation could result in a recession. Freight Waves IMO, consumer discounts are coming....
June 22nd – Make it Rain
What I'm Reading Make it Rain: An LA Times review of state data found that it routinely costs more than $1m per unit to build a subsidized affordable housing unit in California. Between prevailing wage requirements, high material and regulatory costs, the process has become so bloated with corruption and...
June 21st – Help Wanted
What I'm Reading Help Wanted: Construction projects across the U.S. are running short on labor just as $1 trillion in federal infrastructure money starts to kick in. Contractors are responding by offering benefits ranging from signing bonuses to housing allowances to attract and retain workers. Wall Street Journal Drying Up? Over...
June 14th – Taking the Plunge
What I'm Reading Jumping In: Big landlords are increasingly getting into the homebuilding business as demand for single-family rentals continues to surge. CNBC This is exactly what one should expect will happen given that the monthly cost of home ownership has doubled since January 2021. Priced Out: The cost of...