What I'm Reading Running on Empty: Construction of entry level homes has been trailing off since the mid-1970s. In the early 1980s, the percentage of new homes constructed below 1,400 sf was roughly 40%. Today it sits below 10%. The combination of low supply and high demand in the space...
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...
May 6th – More Than Meets the Eye
What I'm Reading Evolution: A new breed of flexible work landlords is converting unused suburban retail locations to office space, potentially transforming downtowns in the process. Wall Street Journal Bottleneck: The Biden administration is racing to end a bottleneck that has prevented state and local governments from distributing nearly $50...
May 5th – Upping the Stakes
What I'm Reading Risk On: According to CBRE's 2021 Investor Intentions Survey, most core or core-plus investors expect their unlevered target returns to fall slightly or stay the same. However, those playing in the value add and distressed spaces anticipate that returns will increase, especially those based in the US. ...
April 30th – Up, Up and Away
What I'm Reading It's Official: The Biden tax proposal includes getting rid of the 1031 for gains of over $500k, taxing carried interest as earned income and eliminating the stepped up basis. Obviously, this is the first offer in a negotiation but if even a small amount of these proposals...
April 29th – Liftoff
What I'm Reading Liftoff: Apartment List's national rent survey for May showed its largest monthly jump going back to 2017 as coastal markets rebound and midsized markets that soared in 2020 show few signs of slowing down. This further backs up the story we posted yesterday about OAR picking up. ...
April 27th -The Great Migration
What I'm Reading The Churn: California is undergoing a major population shift, with coastal residents relocating to more inland locations in search of more space and a lower cost of living. Washington Post Its Time: Americans overwhelmingly believe that marijuana should be legal for recreational or medical use in the...
April 21st – Wait and See
What I'm Reading Wait and See: The office market is in for a long period of adjustment as tenants take a non-committal, wait and see approach to what the future will hold while scaling back gradually on their footprint. AVC Anti Establishment: Americans have unprecedented access to marijuana as numerous...
April 20th – Turning the Corner
What I'm Reading Turning the Corner: An analysis of the pace of CRE workouts by Real Capital Analytics showed that more US commercial real estate distress was worked out than arose in Q1. However, the authors were careful to note that there is still sizeable potential distress on the horizon...
April 15th – Out of Balance
What I'm Reading Out of Balance: Garden style apartments make up 49% of existing inventory in the US and typically consist of more affordable B and C properties that appeal to working class tenants. However, thanks to the high cost of materials and land, only 3.6% of all apartments in...