One Big Thing Still Flowing: CMBS originators and debt funds have pulled back during the pandemic. However, the real estate capital markets have largely continued to function, thus far avoiding the near-complete shutdown experienced during the Great Financial Crisis and preventing a major crash in valuations. Real Clear Analytics This brings to mind...
September 18th – Open to Interpretation
What I’m Reading Open to Interpretation: From state to state, and even judge to judge, a simple-sounding order by the C.D.C. to halt evictions through the end of the year due to the pandemic is being enforced in a far-from-uniform manner. The New York Times Full Picture: NMHC’s rent payment tracker for September...
September 17th – Aaaand Scene
What I’m Reading Aaaaand Scene: The cameras are rolling and Hollywood’s film industry is slowly coming back to work, That is bringing intense demand for studio space, new interest from investors and higher rental rates. Commercial Observer Losing Hope: As the pandemic recession continues, many small and midsize U.S. banks find themselves buried...
September 15th – Building Inferno
What I’m Reading Building Inferno: Three million of California’s 12 million homes are at high risk for wildfires per CalFire. That designation hurts home values, which in turn increases mortgage default risk, according to research by the Commodities Futures Trading Commission (CFTC). If fires continue to cause more damage and insurance...
September 14th – Opening Up
What I’m Reading Opening Up: The Securities and Exchange Commission modified its definition of “accredited investor: in August, changing who is allowed by law to invest in private securities offerings. The new definition is less restrictive, which will likely open up an opportunity for more investors to participate in private real...
September 11th – Rolling Over
September 10th – Can’t Get Out
Can’t Get Out: US imports from Asia in August jumped 34 percent from June, driven by ongoing strong demand for e-commerce fulfillment and personal protective equipment (PPE). Imports from China alone last month were up 32 percent from June. I’ve been skeptical about the whole re-shoring-due-to-COVID narrative (outside of perhaps...
September 9th – Hot Spot
What I’m Reading Hot Spot: California investors typically account for 30% to 40% of transaction volumes in Arizona, but recently, that number has increased to 50% as capital from the Golden State flocks to more business friendly locales. Globe Street Setting a Precedent: There are several shut-down generated lawsuits currently making their way...
September 4th – Hard Stop
What I’m Reading Hard Stop: The Centers for Disease Control and Prevention is using its quarantine authority to temporarily halt evictions in order to keep COVID-19 from spreading. The order is effective immediately and will run through the end of the year. People earning under $99,000 a year or couples earning...
September 3rd – Stocking Up
What I'm Reading Stocking Up: US retailers — burned by stock-outs in the second quarter as the retail inventories-to-sales ratio hit a 2020 low in June — are ramping up imports, sending a vast majority of their cargoes through Southern California to feed waves of e-commerce orders to avoid getting...