News

Landmark Links January 10th – Back From the Dead

Must Read: Non-traded REITs are back after suffering a more than 50% collapse in fundraising a few years ago after industry scandals and criticism.  This time around, its being driven by massive investment firms like Blackstone and Starwood – rather than smaller sponsors – and the fees are a bit lower (although still on the high side).  Of course, this is being driven by the insatiable investor hunger for yield, which is only getting more acute as the Baby Boomers march into retirement.  Given the past history of this asset subclass, I can’t imagine that its a great risk / reward but investors have an incredibly short memory.

Economy

Uncertainty:  A primary theme in 2020 is likely to be trend exhaustion as many of the economic, geopolitical and social trends that have been with us for years appear to be nearing an inflection point.

Stocking Up: High net worth investors are increasing their cash holdingsamid concerns about an economic downturn.

Endless Road: The National Retirement Risk Index shows that half of today’s working-age households are at risk of not being able to maintain their standard of living in retirement. This is far worse than before the Great Recession and, as you can imagine, looks even more dire when sorted by income.

Commercial

Blindsided: Like the car and cash register, most technologies that fundamentally change real estate are not initially thought of as tied to it.

Rise of the Machines: Google’s parent company is designing new technology to further automate warehouses.

Round Trip: Real estate crowdfunding was hailed as a revolutionary approach when it launched in 2012.  However, Many of the firms that have survived increasingly resemble those that existed long before crowdfunding, such as private real-estate funds, real-estate investment trusts and old-school syndication.

Residential

Whit Hot: The multi-family sector in Phoenix has been on fire lately and while construction has increased, it can’t keep up with demand, leading to the nation’s fastest growing rents in late 2019.

Point and Click: The purchase (and management) of investment properties is rapidly moving online thanks to some relatively new startups.

Profiles

James Bond: Former auto executive Carlos Ghosn sneaked out of Japan on a flight to Turkey in a box used for audio gear to avoid facing charges stemming from his time as the CEO of Nissan.

Poor Winners: Streaming services may have won the war against cable but they are bleeding cash and no major subscription provider generates reliable profits from streaming video, raising questions as to whether or not they can ever generate a profit.

Dramatic Improvement: It’s often difficult to notice improvements in life as they happen gradually as opposed to setbacks, which often happen quickly.  However, a look back at what things were like in the early 1980s shows that we are better off today than we have ever been.

Chart of the Day

Existing supply is still at a very low level.

supply

Source: JBREC

WTF

No Takers: A drunk woman (who was not unattractive, by the way) was arrested after going on a four hour plane rampage which included head-butting and biting crew members because none of the men on the flight would agree to join the mile high club with her.  She’s apparently headed to jail for 6-months but is definitely single if any of you guys are interested.

Polly Wanna Get The Hell Out: Police were called for a woman screaming ‘let me out.’ However, the voice turned out to be a parrot because Florida. (h/t Ty Reed)

Let it all Hang Out: A man was accused of watching porn on his cell phone and touching himself because Applebee’s.

Landmark Links – A candid look at the economy, real estate, and other things sometimes related.

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