News

Landmark Links October 11th – Unintended Consequences

Must Read: California Governor Gavin Newsom signed a rent control bill  into law earlier this week to try to stem the state’s rapid increase in housing costs.  This despite the fact that rent control is universally despised by economists across the political spectrum and almost never works in practice.  Right on cue, landlords are planning on […]

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Landmark Links October 8th – Balancing Act

Must Read: Apartment construction was expected to peak in 2017/2017 but the market apparently didn’t get the memo.  Household formation continued to surge from 400k-500k per year at the bottom of the housing crash to 1.5MM per year today.  When for sale housing slowed in 2018, demand shifted toward multi-family.  As a result, apartment demand from […]

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Landmark Links October 4th – Bargain Bin

Must Read: Mall investment sales volume is down.  However, while few class-A malls are trading hands, opportunistic investors are buying class-B and-C assets for redevelopment plays. Economy Stretched Out: About a third of auto loans for new vehicles taken in the first half of 2019 had terms of longer than six years. A decade ago, that number […]

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Landmark Links October 1st – Down for the Count

Lead Story: Life comes at you fast.  I first posted about WeWork back in July of 2016 when the co-working giant had just been valued at a whopping (at the time) $16 billion. It stuck me as odd that a venture that had little to do with technology and with few barriers to entry could achieve that […]

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Landmark Links September 24th – Not Ready for Prime Time

Must Read: (SOFR aka LIBOR’s chosen replacement) is a fucking mess (for those of you offended by swearing, that’s a technical term).  LIBOR, the scandal-plagued borrowing index that has often been called the most important number in the world was at the center of a major financial scandal that lasted from the early 2000s to […]

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Landmark Links September 20th – Tectonic Shift

Must Read: Fifteen years ago, industrial real estate was an asset class largely held by small to medium sized local operators.  Today, thanks to innovation and changes in supply chain management, it has been overtaken by large institutional investors. Economy Cross-hairs: A decade of freewheeling growth has put gig economy companies in the spotlight and regulatory […]

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Landmark Links September 17th – Dumb and Dumber

Must Read: In a rare moment of lucidity, the California electorate soundly rejected a proposition that would have opened the door to statewide rent control last year.  In the months since then, state legislators have failed miserably in passing any bill that would meaningfully impact our epic housing affordability crisis, despite some good proposals.  So, with […]

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Landmark Links September 10th – Disappearing Act

Must Read: According to a new report on affordable housing from the UCLA Siman Center for Real Estate, naturally occurring affordable real estate, defined as class-B and class-C housing with below market rents, is disappearing as a result of value-add investment and a lack of new affordable housing development – thanks to restrictive zoning and soaring […]

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Landmark Links September 6th – Taking the Plunge

Lead Story: Like many of you, I’ve been closely monitoring the impending catastrophe that is the WeWork IPO.  Over the past year, WeWork’s largest investor, SoftBank committed to invest $4 billion in the company and spend $1 billion to buy shares from employees and existing investors at an obscene value of $47 billion.  What is often […]

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Landmark Links September 3rd – All Inclusive

Must Read: Companies are securitizing everything not tied down as investors’ ravenous  search for yield continues to ramp up and so-called “Whole Business Bonds” catch on: Franchised companies like burger restaurant Jack in the Box Inc. and massage provider Massage Envy are increasingly selling unusual bonds backed by most of their business. By pledging key assets […]

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