What I'm Reading Exodus: Companies continue to abandon millions of square feet of office space. Things appear poised to get worse with a record number of leases expiring in the second half of 2022. Business Insider Doubling Down: Santa Monica is moving to tighten its notoriously tight rent controls even...
May 9th – Boomerang
What I'm Reading Boomerang: Millions of older Americans retired early during the pandemic, leaving the US in a severe labor imbalance. However, new data indicates that they are returning to the workforce in large numbers in recent months. Many retirees are being pulled back to jobs by a combination of...
May 2nd – Whipsaw
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 26th – Pacman
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...
March 15th – Lockdown
What I'm Reading Political Risk: With the housing market tight and rents exploding higher in much of the country, an increasing number of municipalities are considering rent control measures. Wall Street Journal What is most astounding here is that this hasn't worked anywhere that its been tried and typically makes...
March 4th – Seller’s Market
What I'm Reading Sellers Market: A new Reuters poll of property analysts suggests that US house prices would rise 10.3% this year. That was an upgrade from 8.0% in the December poll, suggesting underlying demand for housing is still strong and housing supply is still tight. Reuters Hitting the Wall:...
January 5th – Stuck in Place
What I'm Reading Boxed In: Despite an incredibly tight apartment market, Los Angeles won't allow rent hikes for tenants in rent-stabilized units - which accounts for approximately 75% of inventory - until at least 2023. This despite costs rising sharply, including labor and materials for building repairs as well as...
November 29th – Turnaround
What I'm Reading Back in Style: Retail store openings in 2021will exceed closings for the first time since 2017. Department stores and specialty retailers are still closing faster than they are opening but even closings in that segment have slowed. The key here is integration between ecommerce and brick and...
November 16th – Dead End
What I'm Reading Dead End: Just a few days after St. Paul, Minnesota voters approved the nation's strictest rent control measures, developers and their lenders are halting projects due to the economic impact. Now politicians - many of whom supported the measure - are backtracking furiously as they realize that...
October 28th – Safety First
What I'm Reading Safety First: Proligis's Q3 earnings call characterized industrial demand as being in "panic mode" with tenants showing an insatiable appetite for space. Bisnow A primary driver here is the fundamental shift in the way that retailers handle their supply chain management. Space was already tight in the...