What I'm Reading Whipsaw: US GDP surprised to the downside last week, declining 1.4%. The drop stemmed from a widening trade deficit. Imports to the U.S. surged and exports fell, dynamics reflecting pandemic-related supply-chain constraints. A slower pace of inventory investment by businesses in the first quarter—compared with a rapid...
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 16th – On Watch
What I'm Reading On Watch: There is a strong correlation between a dramatic rise in oil prices and recessions. Historically, not every recession is preceded by a 50% rise in oil but every 50% rise in crude has resulted in a recession but not for the reason that you may...
March 10th – Riding the Wave
What I'm Reading Riding the Wave: Industrial supply is not likely to catch up with demand anytime soon, even as developers ramp up new construction. As a result, both rent and property values should continue to surge. Globe Street Much like what the market experienced during the pandemic, I expect...