What I'm Reading On Demand: Pop-up distribution centers are becoming a thing as the pandemic forced retailers and e-commerce platforms to quickly and cost-effectively respond to localized demand surges in their supply chains. Chain Store Age Cream Rises to the Top: For years, international investors favored office buildings when it...
June 18th – Pile Up
What I'm Reading Pile Up: SKW Funding and Bain Capital have formed a JV targeting $1.3 billion of acquisitions and loan originations on troubled assets over the next several years. The money targeting distress keeps pouring in despite a lack of actual distress. Consider this yet another reminder that fundraising...
June 14th – Churn
What I'm Reading On the Move: Most multifamily management companies set retention goals for the properties that they manage of 50% or higher. However, the majority are falling far short of this goal according to a new manager survey from manager software platform Zego. The most interesting part? C projects,...
June 11th – Sweet Spot
One Big Thing Topping Out: Economic data is beginning to show signs that the recent surge in US inflation is peaking, despite higher than expected CPI readings that were heavily influenced by massive inflation in used cars. Capital Spectator The second half of this year could be really interesting if...
June 9th – Leap of Faith Part 1
One Big Thing Construction prices are soaring and eating into the yields of multifamily developers. In an environment like this, its nearly impossible to forecast costs over the typical 2-3 year build cycle for most large multifamily buildings. As a result, developers have to gamble that rent increases will keep...
June 8th – Slow Out of the Gate
What I'm Reading Slow Out of the Gate: Another meh jobs report shows that the summertime economic boom that many anticipated with reopening may not be quite so hot: "To the degree that the labor shortage is caused by expanded jobless benefits or schools that are closed, it should go...
June 4th – Hitting the Water
What I'm Reading Hitting the Water: The National Marine Manufacturers Association says powerboat sales hit a 13-year high in 2020, with 310,000 new vessels sold, up 12 percent from the previous year. Difficult as it is to believe, 2021 is looking even better. As of February, shipments of new powerboats...
May 27th – New High
What I'm Reading New High: The nationwide price to rent ratio has hit its highest level since at least 1975, taking out the 2006 peak. While I am still not sold on the idea that we are in a bubble, valuations are clearly very rich and we are clearly well...
May 14th – Safe Haven
What I'm Reading Safe Haven: Capital is flooding into Opportunity Zones as other traditional real estate tax advantages come under fire from the Biden Administration. At the moment, it looks like any revisions to the program will be minor, making it relatively more attractive to investors in the event that...
May 11th – Running of the Bulls
What I'm Reading Glass Half Full: The results DLA Piper’s latest State of the Market Survey revealed no shortage of bullish sentiment about commercial real estate with 74% expressing optimism about the market in 2021 versus just 24% a year prior. Respondents were especially bullish on markets like Austin and...