What I'm Reading On the Clock: The 2017 tax law contains a provision allowing for bonus depreciation on eligible assets, allowing investors who qualify as a real estate professional to shelter income, even in the absence of a 1031 exchange. A sunset provision was built into the law, meaning that...
January 19th – In Limbo
What I'm Reading Not Out of the Woods: Trepp's overall CMBS delinquency rate increased for the first time in 18 months. The move was driven by issues in the office sector which is still facing work from home headwinds. Over the next five years, 42% of the full-term interest-only loans for office...
January 18th – Bare Shelves
What I'm Reading Bare Shelves: US home sales fell the most in 18 months in December. A lack of supply, not demand is driving the move. As would be expected in this environment, prices are still increasing rapidly. Bloomberg Coming Around: As the pandemic wears on, corporate America is increasingly...
January 17th – In the Spotlight
What I'm Reading In the Spotlight: Non-traditional property sectors like manufactured homes, gaming, cold storage, healthcare and single-family rentals will likely be the top performing CRE assets in 2022. Globe Street Stretched Thin: Guest demand is back across a substantial portion of the hospitality industry. However, shortages caused by supply...
January 14th – Locked Down
What I'm Reading Locked Down: With Covid-19 flaring up across China, major manufacturers are shutting factories, ports are clogging up and workers are in short supply as officials impose city lockdowns and mass testing on a scale unseen in nearly two years. There have even been rumors of a potential...
January 13th – Much Ado About Nothing
What I'm Reading Much Ado About Nothing: Despite wild forecasts of an eviction tsunami when the federal moratorium ended, actual eviction filings are still 40% below their pre-pandemic historical average. Five Thirty Eight Also, told ya so. Emptied Out: Omicron is upending grocery operations across the entire supply chain. Staffing...
January 12th – Fueling Up
What I'm Reading Fueling Up: The pandemic has reduced interest in international investments for US-based asset owners. At the same time, foreign investors are showing an increased appetite for US, with 75% of respondents to a recent AFIRE survey indicating that they would increase their volume here in the next...
January 11th – Open House
What I'm Reading Open House: Supply chain issues are making it difficult for home builders to complete new houses, despite increased building activity. As a result, mostly finished units are often sitting for weeks, awaiting the delivery of items like garage doors and gutters. Wall Street Journal No End in...
January 10th – Misdirection
One Big Thing The following is not tax advice. There are several things that we can say definitively about disgraced WeWork co-founder Adam Neuman. Here are a few: He is a massive self promoter He is generally full of shit. Like it or not, he is one of the great...
January 7th – Poached
What I'm Reading Poached: Boise, Idaho has an interesting jobs dynamic that I suspect is playing out in other so-called 'Zoom towns' as well. Historically low local wages, coupled with a strong talent pool have made Boise a target-rich environment for coastal companies - especially in tech - looking for...