Quick programming note: Basis Points will be off the rest of this week. Happy Thanksgiving, everyone! What I'm Reading Cash Cows: An unprecedented supply chain crisis has resulted in public container shipping companies hitting all time highs for net revenue. To put this in perspective, the $48.1 billion in 3Q21...
November 22nd – Emergency Measures
What I'm Reading Bottoms Up: Despite all the talk about burnout and reevaluating priorities, the soaring quits rate has little to do with white-collar jobs. It's more about lower-income people getting the chance to move up. Bloomberg Desperate Times: Federal lawmakers are pushing California Governor Gavin Newsome to declare a...
November 19th – Perfect Disguise
What I'm Reading Narrative Shift: Distressed debt funds are rebranding themselves as "opportunistic credit" as they come to the realization that distressed opportunities don't really exist at the moment. WealthManagement.com Turning Point? North American sublease office sector inventory declined for the first time since the pandemic began. Cushman and Wakefield...
November 18th – YOLO
Closing Announcement: RanchHarbor recently closed on Glenbrook Apartments, a 112 unit value add property in Boise, Idaho. Glenbrook is our second acquisition in the Boise market. We are excited about the closing and renovations are already underway. REBusiness Online Want to see more opportunities from us? Sign up here: RanchHarbor...
November 17th – Space Available
What I'm Reading Risk On: The board of CalPERS, the nation's largest pension fund, voted Monday to use 5% leverage and alternative assets to meet its investment-return target, even after lowering that target just a few months ago. The trustees also voted to increase riskier alternative investments, raising private-equity holdings...
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...
November 15th – Tilting the Scale
What I'm Reading Tilting the Scale: Target allocations to commercial real estate increased for the eight straight year in 2021 according to a recent survey by Hodes Weill & Associates and Cornell University. The average target allocations increased to 10.7 percent, up 10 basis points from 2020, indicating the potential...
November 12th – Baby Boom?
What I'm Reading Baby Boom? A recent Bank of America research note struck an optimistic tone compared with the poor demographic data in the 2020 Census. The report showed that birth rates are beginning to tick up and leading indicators - such as the sale of pregnancy tests - point...
November 11th – Boxed Out
What I'm Reading Boxed Out: Supply chain woes are playing to the strengths of large retailers like Walmart, Amazon and Target who buy in massive scale, and therefore negotiating leverage with manufacturers and 3rd party logistics providers. This is in stark contrast to mom and pop retailers who are struggling...
November 10 – In the Money
What I'm Reading Double Edged Sword: Long-underfunded state and local pension funds are reaping a historic windfall thanks to billions of dollars in record market gains and surplus tax revenues. Now they need to decide what to do with the money in an environment where assets are richly priced and...