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Good morning. Capital raising is making a comeback. Private CRE funds are on track for their strongest year since 2022, with investors shifting back into growth mode.

Today’s issue is brought to you by QC Capital—invest in one of the most resilient and scalable asset classes in CRE.

💻️ Today at 2 PM ET: Unpack the Q3 2025 Fear & Greed Survey with JBREC—get insights on CRE trends, rate cuts, cap rates, and what’s next for Multifamily, Retail, Office & Industrial.

Market Snapshot

*Data as of 09/30/2025 market close.

Dry Powder

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• Get your free guide: $7T in retail capital is flowing into alternatives by 2032 — and real estate is high on the list. So why are most mid-sized GPs still chasing institutions? (sponsored)

• Soft season: Record vacancies and surging supply are pushing U.S. rents down for the second straight month, with the national median now at $1,394. 

• License lapse: The Appraisal Institute’s top reviewer lost his license in 2018, raising doubts about the certification's integrity.

• Landlord spillover: Unsold homes are turning into rentals, cooling single-family rent growth and pressuring big landlords.

• Bubble trouble: UBS warns rising debt and policy shifts may fuel housing bubbles, with Miami and L.A. showing inflated home values far outpacing rent growth. 

• Write-off risk: The return of 100% bonus depreciation is supercharging 1031 exchanges with big tax breaks—but also steep exit liabilities.

• Shifting priorities: HUD is scaling back enforcement, shifting focus from neighborhood-wide lending patterns to individual discrimination cases.

• Funding advance: Mayor Eric Adams is advancing $1.8B to fast-track affordable housing projects under new federal tax credit rules. 

• Foreclosure wave: Veritas Investments, once SF’s largest private landlord, faces foreclosure on 66 buildings after defaulting on over $652M in loans. 

• Riverfront raise: Newgard Group and Two Roads scored $513M in financing for Miami’s One Brickell Riverfront, a two-tower residential project now over 50% complete. 

• Distress rising: Houston apartment sales are rebounding, but Class-C assets remain deeply troubled as foreclosures mount and prices plunge.

• Energy shift: Prologis says energy reliability, AI, and regionalization are driving a major supply chain reset as companies prioritize resilience over cost. 

• Midwest move: Investcorp sold a $365M, 3.5M SF Midwest industrial portfolio but signaled it’s still bullish on the sector.

• Data drag: AI-driven data center demand is booming, but rising costs, power constraints, long lead times, and mounting community pushback are creating serious development risks. 

• Next frontier: Related Midwest and CRG struck a $58M land deal with Blue Owl to launch a multi-billion-dollar quantum computing campus on Chicago’s South Side. 

• Nearshoring boom: U.S.-Mexico border markets are becoming vital logistics hubs as nearshoring, trade realignment, and rising AI manufacturing demand fuel a new era of industrial expansion.

• Runway deal: Hines acquired the mixed-use Runway Playa Vista for $428M, betting on long-term retail and multifamily strength. 

• Leasing lag: Retail lease deals are slowing not just due to costs or market shifts, but also from poor coordination. 

• Bank spread: Investor appetite remains strongest for Chase-leased assets, as higher cap rates and pricing pressure hit Bank of America and Wells Fargo properties. 

• Retail optimism: Retail real estate is becoming the asset class of choice as capital returns, bid sheets grow, and transaction volume climbs heading into 2025. 

• Gateway rebound: Investors are flooding back into California retail, boosting bids, compressing cap rates, and fueling new projects.

• Tower turnaround: Developers Mike Hoque and Mike Ablon are seeking $98M in public support for a $350M overhaul of Dallas’ tallest tower.

• Silicon stake: Apple’s latest $365M Sunnyvale office purchase pushes its Silicon Valley spending spree close to $1B.  

• Tier down: With top-tier office space tightening in Chicago, tenants are shifting into renovated Tier 2 buildings, especially in the West Loop. 

• Guggenheim grows: The firm expanded its Midtown lease to 360K SF at 330 Madison, filling the building and signaling renewed momentum in Manhattan’s office market. 

• Discount deal: The Conrad N. Hilton Foundation sold its half-leased Westlake Village HQ to Oaks Christian School for $25M, half what it paid in 2018.

• Access economy: Private social clubs are expanding in midsize cities, catering to affluent newcomers seeking exclusivity and community. 

• Tourism play: Fort Bend is planning a $235M hotel and convention center to boost Rosenberg as a regional event destination.

A MESSAGE FROM CRETECH

CREtech New York: Where Business Gets Done

Join us October 21 – 22, 2025, in the real estate capital of the world for the industry’s flagship innovation event.

Over two action-packed days, connect with leading owners, developers, investors, and technology innovators shaping the future of the built world. With hosted meetings, world-class speakers, and a groundbreaking expo hall, CREtech New York delivers unmatched opportunities to build relationships and drive real business outcomes.

*This is a paid advertisement. Please see the full disclosure at the bottom of the newsletter.

📈 CHART OF THE DAY