What I’m Reading
Increased Scrutiny: Spiking CMBS delinquencies resulting from the pandemic fallout are likely to trigger enhanced scrutiny from bond investors looking for underwriting errors that will ultimately result in lawsuits.
Silver Lining: One positive post-pandemic trend identified in a new NBER paper is that meetings are getting shorter.
Slowing Down: Freddie Mac’s 2020 Midyear Multifamily Report forecast that weakened economic drivers including employment growth and overall household income, stemming from the COVID-19 pandemic, are expected to weaken the multifamily market for the rest of 2020 and result in higher vacancy rates and lower rent growth. This is expected to have a larger impact on large, coastal metro areas. See Also: The impact of the pandemic on multifamily markets has been uneven, with rents falling in expensive markets but rising in more affordable ones.
Where the Puck is Headed: Blackstone is in the process of building its next real estate empire – studios for streaming companies.
Free Fallin’: Average asking rents along 16 major retail corridors in Manhattan declined for the eleventh consecutive quarter, falling to $688 per square foot in the second quarter, according to CBRE.
Chart of the Day
Credit is inexpensive right now but available to only the highest quality borrowers.
Source: Mohamed El-Erian
Frowned Upon: A pizza deliveryman who was arrested for (allegedly) masturbating inside his 1996 Honda Civic in the parking lot of a Circle K, claimed that he didn’t know that it was illegal because Florida.
Inadmissible Evidence: A judge was forced to suspend the virtual bond hearing of the 17-year-old accused of being the “mastermind” behind a recent massive Twitter hack, after several people got into the Zoom meeting posing as CNN and BBC staffers and posted a porn video. This is the latest bit of evidence that Zoombombing is one of the few blessings that has been bestowed on us in the wretched year 2020.
Landmark Links – A candid look at the economy, real estate, and other things sometimes related.
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