What I'm Reading Buyer's Remorse? RV sales surged during the pandemic. Some new owners are finding vehicle upkeep to be more than they bargained for. USA Today $6 gasoline is only going to add to the buyer's remorse. This is a perfect illustration of why I've been far more bullish...
March 7th – Stepping Up
What I'm Reading Ghost Town: Manhattan’s office availability rate hit 17.4% last month, a new record, according to Colliers data. Since the pandemic began in March 2020, overall availability has increased by 74.1% and now sits at nearly 94M SF. Bisnow Stepping Up: Amazon is pulling back on its logistics...
March 3rd – Beware the Ides of March
What I'm Reading Beware the Ides of March: With omicron cases falling, major employers say they spot a window to bring workers back to the office. However, with a tight job market, the question becomes whether or not employees are willing. Wall Street Journal Embedded: Russian oligarchs have spent decades...
March 1st – Drop it Like its Hot
What I'm Reading Staying Put: Despite a surge during COVID, US mobility has been falling for decades and the problem is getting worse as affordability issues intensify. When people want to move but can't, it leads to economic stagnation and political polarization. Vox Drop it Like It's Hot: Mortgage rates...
February 11th – Coming in Hot
What I'm Reading Coming in Hot: YoY inflation is now 7.5%, the highest rate since 1982. As expected OER, which tends to be sticky turned sharply higher. This seals the deal for a 25 basis point increase at the Fed's March meeting. It also increases the odds of a 50...
February 10th – Shrinkage
What I'm Reading Shifting Focus: Foreign investment in US commercial real estate has exceeded pre-pandemic levels. The big difference is that overseas investors are focusing much more on warehouses and apartments than they were before the pandemic - just like domestic investors. Wall Street Journal Rise of the Machines: Advances...
February 8th – Fire Sale
What I'm Reading Fire Sale: Retail rents are plunging in Manhattan as a lack of office workers makes businesses less viable. On the positive side, falling rates and aggressive concessions have led to falling availability as tenants snap up prime locations at a discount. Bloomberg Decelerating: CoreLogic is projecting that...
February 7th – Defying Gravity
What I'm Reading Defying Gravity: Apartment leasing is typically a seasonal business, with demand cooling with the weather in the winter months. That has not been the case in 2021 and thus far in 2022. Both Q4 occupancy and January occupancy increased for the first time in history, according to...
February 4th – Road Block
What I'm Reading Roadblock: Demand for warehouses in the Inland Empire is massive, pushing new development further east. However, residents are not happy with having new industrial developments nearby and are pushing back hard, resulting in substantial delays or the outright withdrawal of applications. Globe Street This is great news...
February 3rd – Backlog
What I'm Reading Bursting at the Seams: As retailers and logistics companies try to stockpile goods to hedge against supply chain problems, they are facing a new challenge: In many parts of the United States, there is little to no space available to stash the merchandise. Logistics firms are finding...