What I'm Reading Pacman: BREIT is buying another giant operating platform. This time, its industrial investor PS Business Parks, which will be purchased for $7.6 billion. Business Wire Permanent capital continues to eat the (commercial real estate) world. Race to the Bottom: Companies keep paring down their demands for days...
April 22nd – Tough Nut to Crack
What I'm Reading Tough Nut to Crack: The price of a home sold in March set a record, as inventory dwindled and sales fell. Sharply rising mortgage rates are not showing much of an impact on housing yet. CNBC As discussed here previously, I believe that structural factors in the...
April 21st – Back to School
What I'm Reading Boomtown: A massive population influx has set off a boom in South Florida's industrial market. With low vacancies, scarce land and continued population and economic growth, its likely to continue. Wealthmanagement.com Back to School: BREIT's insatiable appetite continues with its just-announced purchase of student housing REIT American...
April 8th – Fake it Till You Make It
What I'm Reading Fake it Till You Make It: A Miami (of course) company is offering "crypto mortgages" Wall Street Journal However, a careful reading of the offering reveals that it's still just a loan secured by the property with an additional pledge of the borrower's crypto holdings. This will...
April 7th – Rise of the Machines
What I'm Reading Rise of the Machines: Drone companies, often backed by massive ecommerce platforms, have been cleared to expand their operations across the U.S. The technology has become faster and more reliable with development. The big question is whether or not it will result in mass adoption. Wall Street...
April 5th – Backslide
What I'm Reading Backslide: Troubled real estate loans for the likes of retail and offices that saw payments get back on track after the 2020 crash are re-defaulting -- signaling more pain for commercial mortgage-bond investors. This is occurring as commercial landlords who lost tenants during Covid are still having...
April 1st – Flexing
What I'm Reading Flexing: Leases on warehouse and distribution facilities are getting shorter as landlords seek flexibility to sign new tenants or renew existing leases at inflating rates. Typically, warehouse landlords (and lenders) have favored longer leases with strong credit tenants as a way to mitigate downside. High demand, tight...
March 31st – Easing Up?
What I'm Reading Slow Motion Crash? Two years after the initial covid outbreak, vacancy rates continue to climb in major office markets around the country, taking a toll on property performance. Barclays analysts noted last week that the share of office mortgages that have been assigned to either "watchlists" of...
March 28th – The Laundromat
What I'm Reading The Laundromat: “In the United States, as in many countries, real estate is an attractive investment for kleptocrats looking to park dubiously sourced money, as it continues to be one of the least transparent industries. This lack of transparency, and the flood of corrupt and illegal cash...
March 25th – Pendulum Swinging
What I'm Reading Pendulum Swinging: Geopolitical stability and improvements in transportation and communications in recent decades allowed companies and countries to opt for what seemed to be the cheapest and easiest supply chain solutions rather than the most secure. Recent world events have revealed the risks of opting for inexpensive...