What I’m Reading
Domino Effect: Excellent quote from Josh Barro of New York Magazine on the downstream impacts of commercial buildings falling in value:
“This isn’t just a problem for people who own buildings. When buildings fall in value, that’s usually because fewer people have cause to work and shop in them, which corresponds to reductions to income and consumption for individuals. And because cities and states depend heavily on taxing commercial properties and the activity that occurs in them, a shock to commercial real-estate values is likely to cause yet another problem for state and local government budgets.”
Hunkering Down: As businesses reopen, more than 40% of people who spent money on movies, event tickets or at bars before the pandemic now plan to spend less on those activities, according to a new survey for CreditCards.com.
On the Offensive: Walmart is planning on launching a long-awaited subscription membership platform later this month that is intended to compete with Amazon Prime.
Adaptive Reuse: Struggling malls with vacant big box space could become attractive as inexpensive alternatives for both co-working space for people who want to work closer to home and large gyms that put a premium on social distancing.
Approaching the Cliff: The AP is now picking up the story that I’ve been writing about since April – renters and multi-family property owners are about to be in a world of hurt if enhanced unemployment expires as scheduled at the end of this month.
Bright Spot: Mortgage applications to purchase a home rose 5% for the week and were a remarkable 33% higher than a year ago as mortgage rates hit another new low.
Chart of the Day
Source: Financial Times
Don’t Make a Sound: Reopening theme parks in Japan are banning yelling on roller coasters in an effort to stop the spread of coronavirus.
That’ll Be a No From Me: An enterprising French baker is switching up her bread recipe by using wheat fertilized with female urine harvested from public restrooms.
Landmark Links – A candid look at the economy, real estate, and other things sometimes related.
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