What I'm Reading Outside Set: With travel restrictions set to be lifted on 33 countries, brokers in cities popular with wealthy foreign investors are reporting a substantial uptick in requests for showings. This is looking like a big shot in the arm for the luxury segment in coastal gateway cities....
November 5th – Danger Zone
What I'm Reading Leverage: Just when you thought that the situation at west coast ports couldn't possibly get worse, contracts for 15,000 west coast dockworker union members are due to expire on July 1, 2022. Obviously, this situation gives the union a ton of negotiating leverage. As a point of...
November 4th – Sitting Ducks
What I'm Reading Sitting Ducks: Idle cargo containers piling up in ports and storage yards have created a target-rich environment for thieves, resulting in yet another supply chain headache. Cargo theft has increased 42% YoY in California during the 3rd quarter. CargoNet Out of Their Hands: The inflationary episode of...
November 1st – Disconnect
What I'm Reading Disconnect: COVID-19 has broken the longstanding connection between wage growth and employment levels. Typically, the rise in wages currently seen would have us at near full employment but that has not yet happened. Full Stack Economics Dispersed: Co-working companies are making big bets on the suburbs, including...
October 28th – Safety First
What I'm Reading Safety First: Proligis's Q3 earnings call characterized industrial demand as being in "panic mode" with tenants showing an insatiable appetite for space. Bisnow A primary driver here is the fundamental shift in the way that retailers handle their supply chain management. Space was already tight in 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 25th – Standoff
What I'm Reading Standoff: Stimulus programs over the past two administrations, coupled with enhanced unemployment and rising asset values have left American balance sheets in better shape than ever. They have also given workers the flexibility to hold out en masse for higher wages, contributing to today's labor shortage. (h/t...
October 22nd – Turning Point
What I'm Reading Turning Point: Amazon has dominated the industrial leasing market, sending prices soaring. However, the ecommerce giant is now beginning to pivot away from leasing towards buying and developing its own facilities. Bisnow Will be interesting to watch how this plays out as a competitor with zero capital...
October 21st – Stacked Deck
What I'm Reading Stacked Deck: Perhaps the biggest reason for the current truck capacity shortage is the surge of goods moving west to east. Simply put, there is too much freight exiting Southern California and too little coming into the area. The problem will persist until the imbalance eases. Think...