News

Landmark Links August 6th – Increased Scrutiny

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.

Swelling: Sublease office space in Los Angeles has hit an all-time high.

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.

Credit Spreads

Source: Mohamed El-Erian

WTF

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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