What I’m Reading Emptied Out: In 2011, US department stores employed 1.2 million employees across 8,600 stores, according to estimates from the research firm IBISWorld. But in 2020, there are now fewer than 700,000 employees in the sector, working across just over 6,000 locations. Vox Comeback Kid: The fact that AirBnb is about...
November 25th – Locked Down
What I’m Reading Locked Down: In a move that should come as no surprise, President Elect Joe Biden and his team are leaning towards extending the CDC eviction moratorium that is set to expire December 31st. Ultimately, this program is just a band aid that forces landlords to shoulder the burden...
November 18th – Back in Line
First, Some Corporate News: RanchHarbor closed on our second deal since launching. This one is a sale-leaseback industrial portfolio in San Diego that was purchased in a joint venture with Stos Partners. Really excited to get another one in the books that will provide a solid yield for our investors. ...
November 16th – Such a Tangled Web
What I’m Reading Tangled Web: As malls continue to struggle, their financing structures – which have only grown more complex over time – are making restructuring particularly challenging. This is perhaps the biggest downside of using CMBS, especially when layered with other forms of financing. When you borrow from a bank...
November 10th – Shot in the Arm
One Big Thing Like me, most of you probably woke up yesterday morning to the Pfizer COVID-19 vaccine news from the AP: Pfizer Inc. said Monday that its COVID-19 vaccine may be a remarkable 90% effective, based on early and incomplete test results that nevertheless brought a big burst of optimism...
November 9th – Thou Dost Protest Too Much
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...
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...
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...
October 23rd – Walking Away
What I’m Reading Walking Away: Trepp researchers parsed special servicer notes on distressed real estate backed by CMBS loans and found a substantial number of borrowers are willing to give assets back to lenders if defaults aren’t cured. As you can probably imagine, most of these are in the hotel and...
October 19th – Color Me Skeptical
One Big Thing A Barclay’s analyst went on CNBC last week and made the claim that converting an underperforming mall to a distribution center or residential complex could reduce the value of the property anywhere from 60% to 90%. While I believe this would be the case if a top...