What I'm Reading Diverted: Money is pouring into real estate funds but investor strategies are different in the past. Historically, downtown office towers were prime targets for institutions, as the size of the assets allows them to deploy hundreds of millions of dollars at once. But now, the long-term stability...
July 14th – Target Rich Environment
What I'm Reading Diamond Hands: Baby Boomers hold the lion's share of real estate wealth in the United States and are showing a higher inclination than previous generations to age in place rather than moving to assisted living. The result has been less housing supply for subsequent generations. New York...
July 13th – Risky Business
What I'm Reading Liftoff: With apartment shortages across much of the country, rents are climbing at the fastest pace seen in decades. Smaller growth markets like Boise continue to lead the way. With for sale housing expensive and development not keeping pace with demand in most places, the real risk...
June 30th – Spillover
What I'm Reading Pressure Valve: Last year, home prices soared across the US while rents stagnated, thanks to a large amount of vacancy in big cities. Now there are signs of price exhaustion in the for sale market and rent versus own ratios have become extremely skewed. As a result,...
June 29th – Fuel on the Fire
What I'm Reading Fuel on the Fire: Every $1 billion in additional e-commerce sales requires 1 million square feet of new warehouse space to support it. Using this calculation as a baseline, the US will need 330 million square feet of new space by 2025 just to keep up with...
June 24th – Quid Pro Quo
What I'm Reading Payoff: Gov. Gavin Newsom says California will pay off all the past-due rent that accumulated in the nation's most populated state because of the fallout from the coronavirus pandemic, a promise to make landlords whole while giving renters a clean slate. I'm sure that its just a...
June 21st – Pop Up
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 17th – Hold The Line
What I'm Reading Holding the Line: The bid/ask gap between buyers and sellers of property types impacted by the pandemic is closing, with buyers mostly meeting seller demands. However, substantial gaps still exist in some markets. Sellers refusing to meet buyers' expectations on price over the past year is a...
June 16th – Called It
What I'm Reading Called It: About a year ago, there was a lot of handwringing over what would happen to the millions of homeowners in forbearance once accommodations expired. I pointed out (on the old blog) that we wouldn't see any meaningful distressed sales because borrowers were equity rich. Instead,...