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Good morning. The Fed delivered its third 25 bp cut of the year, pulling borrowing costs to their lowest level since 2022. Still, with a divided committee and a nearly flat 2026 outlook, CRE capital markets may remain bumpy.

Today's issue is sponsored by CenterCheck—real sales data that fuels better tenant mix, leasing, and underwriting.

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CRE Trivia 🧠

Why doesn't Hanukkah fall on the same date every year?

(Answer at the bottom of the newsletter)

Market Snapshot

*Data as of 12/10/2025 market close.

Construction Outlook

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• 2026 Global Investment Outlook: Why does Hines Research think it’s ‘wheels up’ for real estate in 2026? Subscribe to Market Moves to get first access to Hines’ global insights. (sponsored)

• Nvidia nation: Nvidia is expanding its Silicon Valley headquarters with a 700K SF office building and continues a nationwide real estate push to support surging AI demand. 

• Regulatory rollback: Federal regulators are dismantling key post-2009 banking safeguards—including leveraged lending guidance—raising red flags for CRE as oversight weakens.

• Surveying made simple: Blew’s in-house survey team ensures your deals meet 2026 ALTA/NSPS requirements with reliable, nationwide due diligence support across every asset and market. (sponsored)

• Tariff fallout: A surge in construction project abandonments—up 41% in November—is being driven largely by tariff-related cost spikes. 

• Policy backfire: Since New York’s 485x tax abatement replaced 421a, not a single mixed-income project with 100+ units has been filed. 

• Rebound pending: Multifamily demand remains strong beneath current economic headwinds, with vacancy rates tightening and supply waning. 

• Tournament towns: Youth sports are now anchoring billion-dollar developments, transforming tournaments into engines for mixed-use placemaking.

• Global magnet: Despite political uncertainty and tenant-friendly regulations, NYC’s multifamily market continues to attract strong foreign investment.

• Tax hack: South Florida landlords are rapidly converting market-rate units into workforce housing to capitalize on the Live Local Act’s lucrative property tax breaks.  

• Midwest pressure: Columbus’s rise as a job magnet is driving up housing costs, threatening its status as an affordable city for middle-class residents. 

• Delayed windfall: Toll Brothers will receive $380M—$33M more than initially agreed—for its multifamily unit sale to Kennedy Wilson, but deal delays have pushed closing to early 2026. 

• Suburban squeeze: Twin Cities suburbs are now among the nation’s toughest rental markets as vacancies shrink and lease renewals surge. 

• Investor exodus: Tough rent control laws and complex regulations are driving multifamily investors away from Maryland suburbs, stalling new development. 

• Policy pause: HUD paused controversial homelessness funding changes amid legal challenges but plans to reissue them with minor edits.

• Industrial gains: Terreno Realty bought a Maryland industrial site for $50M, tripling Atapco’s 2020 investment.

• Strategic buy: Catalyst and SIII Investments acquired a $51M, 402K SF industrial portfolio in Sacramento, betting on strong demographics and long-term growth.

• DFW demand: LBA Logistics bought a 616K SF South Dallas industrial property, betting on lease-up potential amid strong tenant demand.

• SoCal sale: Hines sold the fully leased, 228K SF Raceway Industrial warehouse in Carlsbad to New Pacific Realty for $73M.

• Green grocery: Amazon cut energy use by 15% at three grocery hubs using AI from Trane Technologies and plans to expand the system to 30+ sites.

• Style reset: Target is relaunching its SoHo store in Manhattan as an immersive, design-forward concept to reignite its cheap-chic brand image. 

• Loop loss: A long-vacant retail property on Chicago’s State Street sold for just $2.8M, far below its former $18.3M mortgage. 

• Auto offload: Advance Auto Parts is selling 83 owned and leased properties across 38 states as it streamlines its real estate portfolio. 

• Vegas vision: Area15 is expanding its immersive Las Vegas campus with new entertainment venues, themed eateries, and flagship retail concepts. 

• Anchored asset: Hines Global Income Trust acquired Clay Terrace, a nearly 500K SF open-air lifestyle center in Carmel, Indiana, for $199M.

• Conversion surge: Office leasing in Lower Manhattan has doubled in 2025, driven by residential conversions shrinking supply and prompting displaced tenants to stay in the area. 

• Growth magnet: DFW’s top-tier office rents are soaring, driven by tight supply, strong demand, and a development slowdown. 

• Loop legacy: Chicago’s 30 N. LaSalle tower is moving toward landmark status to unlock $47M in tax breaks for a planned office-to-residential conversion. 

• Dallas deal: Northwood sold the 230K SF Offices at Park Lane in Dallas, as the city remains a top U.S. market for office investment in 2025.

• Times turnaround: Highgate, Gencom, and Argent Ventures acquired the InterContinental New York Times Square for $230M, marking one of 2025’s biggest hotel deals. 

• Udon arrival: Acclaimed Boston-based noodle shop Yume Ga Arukara is opening its first NYC location in NoMad.

• Suite strategy: Noble Investment Group added 35 Sonesta Simply Suites hotels to its extended-stay platform, expanding its Sunbelt-focused portfolio. 

• Strategic stay: DKN Hotels has acquired the 150-suite Residence Inn by Marriott in San Diego’s Sorrento Mesa/Sorrento Valley and plans a full-scale renovation in 2026.

📈 CHART OF THE DAY

CRE Trivia (Answer)🧠

Because it follows the Hebrew lunar calendar, which doesn’t align with the Gregorian calendar—typically landing sometime between late November and late December.