1. Pandemic Outlook: Light Industrial Demonstrates Resilience in the Face of Covid-19 Economic Shock

    Posted on September 12, 2020

    Pandemic Outlook: Light Industrial Demonstrates Resilience in the Face of Covid-19 Economic Shock The impact of the pandemic has been wide-reaching, touching every aspect of our lives. It is affecting where and how we work, with whom we interact, and where we feel comfortable purchasing our necessities of daily life. The fear and uncertainty evoked […]

  2. Bond Yields at Record Low: Relative to BBB Bonds, CRE Looks Historically Cheap

    Posted on July 3, 2020

    Bond Yields at Record Low: Relative to BBB bonds, CRE looks historically cheap The Fed was prepared to move quickly, applying hard lessons learned during the financial crisis 10 years ago to support credit markets during the economic shock of the pandemic.  These efforts complement pre-CoVid trends of structurally low bond yields that reflected relatively […]

  3. Household Incomes Up Despite the Pandemic: Headline Income Numbers Mask Underlying Economic Weakness; High Frequency Data May Be A Head Fake.

    Posted on June 26, 2020

    Household Incomes Up Despite the Pandemic: Headline income numbers mask underlying economic weakness; high frequency data may be a head fake. Swift and unprecedented fiscal stimulus through the CARES act has boosted household incomes and put a floor under consumption…at least in the short term.  The combination of $270 billion in one-time stimulus checks and […]

  4. Limited Parallels: Unprecedented Economic Disruption, But The Pandemic Has Limited Parallels With The Last Recession…Especially For Commercial Real Estate

    Posted on April 21, 2020

    Limited Parallels: Unprecedented economic disruption, but the pandemic has limited parallels with the last recession…especially for commercial real estate

  5. The Global Pandemic: Unprecedented Economic Disruption Is Met With An Unprecedented Policy Response. CRE Should Hold Up Relatively Well

    Posted on April 14, 2020

    The Global Pandemic: Unprecedented economic disruption is met with an unprecedented policy response. CRE should hold up relatively well Unprecedented Economic Shutdown Current job losses are an intentional transfer of payroll from private to public sector – in the short term, incomes are more important than unemployment Traditional econometric models are less valuable in this […]

  6. The Great Moderation: Persistently Low Interest Rate Environment Expected, Supporting Asset Values

    Posted on October 9, 2019

    The Great Moderation: Persistently low interest rate environment expected, supporting asset values Interest rates in the U.S. have been falling steadily since the 1980s, and real rates have been near zero during much of the expansion following the GFC.  Notably, interest rates peaked during the early 80s, when the Baby Boomers were entering the work […]

  7. Well-Heeled Renter Households Soar: The Combination Of Lifestyle Choices And High Barriers To Homeownership Has Led To Booming Growth In Middle- And High-Income Renter Households.

    Posted on October 9, 2019

    Well-Heeled Renter Households Soar: The combination of lifestyle choices and high barriers to homeownership has led to booming growth in middle- and high-income renter households. In the first eight years of the expansion, the pool of middle- and high-income households increased by more than 8 million.  The growth rates were particularly impressive for high income […]

  8. More Room for Institutional Capital: Fragmented Ownership and Cap Rate Spreads Suggest Room for Further Capital Allocation

    Posted on August 3, 2019

    More Room for Institutional Capital: Fragmented Ownership and Cap Rate Spreads Suggest Room for Further Capital Allocation Over the past five years the industrial sector has dramatically outperformed the NCREIF Index, achieving an average annual return of 13.7% compared to 8.8% for the remainder of the index. Light industrial’s sharp rent and price appreciation has […]

  9. Transactions And Price Trend Higher: Transaction Volume And Pricing Trends For Light Industrial Buildings Suggest Investor Bullishness

    Posted on July 23, 2019

    Transactions and Price Trend Higher: Transaction volume and pricing trends for light industrial buildings suggest investor bullishness The persistent supply/demand imbalance within the light industrial sector is bolstering its appeal among a growing share of investors. Since 2010, both the number and average valuation of light industrial buildings traded have surged upward.  At the same […]

  10. E-Commerce: Growth In Online Commerce Is Setting Up Light Industrial Demand for Multi-Cycle Expansion

    Posted on July 16, 2019

    E-Commerce: Growth in Online Commerce is Setting Up Light Industrial Demand for Multi-Cycle Expansion As growth in online spending shifts retail inventory from stores to warehouses, the resulting boost to industrial demand is not as simple as a one-for-one trade out of brick and mortar retail selling space for warehouse space.  Instead, as transactions shift […]