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Good morning. Cincinnati just knocked D.C. off the top spot for renter engagement. Q3 data shows renters shifting toward more affordable, in-demand markets, especially in the Midwest.

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🎙️This Week on No Cap: Jack and Alex talk with Lev founder & CEO Yaakov Zar about turning mortgage frustration into a leading CRE tech platform, and how AI is transforming the future of CRE financing.

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Market Snapshot

*Data as of 11/24/2025 market close.

Midwest Moment

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• Vendor breach: SitusAMC was hacked, exposing client data and triggering FBI and bank reviews, though no banking operations were disrupted.

• Price plateau: Single-family rent growth dropped to just 1% YoY in September, the lowest in 15 years. 

• Delayed recovery: CRE’s long-anticipated rebound remains elusive as high rates, partial economic data, and mounting office loan distress delay true market price discovery and capital reentry. 

• Growth blueprint: World Business Chicago’s $1.4T growth plan targets nine industries and 300K new jobs by 2034, setting the stage for major CRE opportunities.  

• Appraisal gap: Miami delayed the $29M sale of a prime Watson Island site over concerns it's vastly undervalued, with appraisals suggesting it could be worth up to $342M.

• Failed vision: The long-delayed $2B Angels Landing project in Downtown LA has officially collapsed, and the high-profile site may now be auctioned.

• Stability slips: After years of stability, LIHTC properties are under pressure as inflation, cost overruns, and delayed projects drive deficits and weaken performance. 

• Density clash: Florida’s Live Local Act is fueling a wave of high-rise proposals by stripping cities of zoning veto power.  

• Fund launch: Broad Creek Capital closed its first $150M multifamily fund, acquiring a 298-unit Charlotte property and targeting value-add housing in the Southeast and Sun Belt. 

• Housing boost: J.P. Morgan originated $5B in affordable housing investments by Q3 2025, aiming to create or preserve nearly 39,000 units across major U.S. cities.

• Market signal: Prologis secured approval for a 1.6M SF logistics hub in San Francisco’s Bayview, signaling renewed confidence in industrial demand. 

• Office conversion: Vacant office buildings present a major opportunity for data center development as demand surges. 

• Tech transition: National Development is planning a 950K SF industrial redevelopment at Intel’s former Hudson campus.

• Manufacturing hub: Novartis is investing $771M to build a U.S. manufacturing hub in North Carolina, creating 700 jobs by 2030. 

• Production upgrade: Rockwell Automation plans to build a 1M+ square foot advanced manufacturing facility in Wisconsin as part of a $2B U.S. expansion strategy.

• Share your insights: Early rate cuts have lifted sentiment but market uncertainty lingers; share your take in our Q4 2025 CRE sentiment survey.

• Goodwill glow-up: Goodwill is modernizing with bigger, brighter stores in affluent areas to attract younger shoppers and boost sales. 

• Bonus boost: Tax incentives like 100% bonus depreciation are driving record interest in single-tenant net lease retail properties. 

• Mall consolidation: Simon Property Group’s full acquisition of Taubman Realty Group has led to the closure of Taubman’s Michigan headquarters and 105 layoffs. 

• Leasing lift: Retail real estate bounced back in Q3 with rising tenant demand, tight supply, and renewed investor interest. 

• Plaza purchase: Longpoint bought Riverside’s Five Points Plaza retail center for $31M in its first sale since 1986.

• Midweek momentum: Office foot traffic rose 5% YoY in October, driven by hybrid work shifts and fewer remote roles. 

• AI immunity: Empire State Realty CEO Tony Malkin says NYC office jobs are safe from AI disruption—for now. 

• Queens grab: United Construction bought a 104K SF office-and-retail building in Flushing from Madison Realty Capital for $64.25M. 

• Mile-high build: Broe Group broke ground on a 165K SF Class A office project in Cherry Creek, set to be its new HQ and feature the area's largest floorplates.

• Crash and burn: Sonder collapsed into bankruptcy after overextending on master leases, burning through cash, and failing to integrate with Marriott. 

• Brand reboot: citizenM's parent has rebranded as Another Star post-Marriott deal, backed by $685M financing and global growth plans.

📈 CHART OF THE DAY