What I'm Reading On Watch: There is a strong correlation between a dramatic rise in oil prices and recessions. Historically, not every recession is preceded by a 50% rise in oil but every 50% rise in crude has resulted in a recession but not for the reason that you may...
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 11th – Coming in Hot
What I'm Reading Coming in Hot: RV and boat storage remains in incredibly high demand. In 2021, consumers visiting Self Storage facilities websites managed by StoragePug were seeking out boat and RV parking at a whopping 250% higher rate than they did in 2020. (h/t Scott Ramser) Radius+ Combine this with...
March 10th – Riding the Wave
What I'm Reading Riding the Wave: Industrial supply is not likely to catch up with demand anytime soon, even as developers ramp up new construction. As a result, both rent and property values should continue to surge. Globe Street Much like what the market experienced during the pandemic, I expect...
March 9th – In the Cold
What I'm Reading In the Cold: US real estate investors like Hines and Morgan Stanley have ridden out ruble devaluations, financial crises and the economic sanctions that followed Russia’s 2014 annexation of Crimea to chalk up positive returns on their Russian real estate portfolios. Now they are facing calls to...
March 8th – Buyer’s Remorse?
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 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:...
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 2nd – Paved Paradise
What I'm Reading Land Rush: The imminent rise of self driving trucks will fuel even more demand for outdoor industrial storage. (h/t Scott Ramser) Wall Street Journal IMO, this previously overlooked space is about to become a darling of the CRE investment world. Why? Demand will continue to increase due...