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Good morning. Real estate ownership is increasingly moving onto the blockchain. Goldman Sachs’ latest fund launch highlights growing institutional confidence in tokenized investment vehicles.

🎙️ This Week on No Cap: Henry founder Sammy Greenwall explains why AI isn't replacing CRE professionals—it's eliminating the work they hate most.

CRE Trivia 🧠

What was Brookfield Asset Management called before it rebranded in 2005, a name blending "Brazil" and "Canada"?

IN PARTNERSHIP WITH BTR HAUS

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Demand for attainable rental housing continues to outpace supply across the Midwest.

BTR Haus develops single-story build-to-rent communities designed for today's renters while leveraging public incentives to enhance project economics. Colliers recently appraised their Brook Park project at $350K/door, suggesting confirmation of what the market has been signaling: Midwest BTR is pricing at a premium.

With 17,000 units delivered and $4B financed, BTR Haus is currently accepting accredited investors into its newest Midwest build-to-rent opportunity.

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

Market Snapshot

*Data as of 06/05/2026 market close.

Digital Ownership

A MESSAGE FROM GROCAPITUS INVESTMENTS

Has the Next CRE Cycle Already Started?

Join Neal Bawa, Founder & CEO of Grocapitus Investments, for a data-driven look at where CRE opportunities are emerging, which sectors are recovering, and how investors are positioning capital in 2026.

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

• AI in Brokerage: Is AI making brokers more productive — or is the noise becoming a distraction? One platform thinks it has the answer. (sponsored)

• Selective stability: U.S. CRE remained steady in Q1 2026 as retail led returns, gateway apartments outperformed, and improving fundamentals created selective opportunities for long-term investors. 

• Distress divide: CMBS distress climbed across most major U.S. markets, led by worsening office loan stress in several Midwest and mid-sized metros.

• Stress-test your deals: Model deals, stress-test assumptions, and track performance with institutional-grade tools. Get a free account and start today. (sponsored)

• Credit pressure: The Fed warned that growing stress in private credit funds could reduce capital available for CRE, even as overall CRE fundamentals remain stable. 

• Cash unlock: Sale-leaseback activity is accelerating as companies sell real estate to raise capital, fueled by stronger M&A activity and a growing need for balance sheet flexibility.

• Western shift: The West became the most sought-after region for renters for the first time, led by strong demand in cities like Minneapolis, Miami, Oakland, and Spokane ahead of the summer leasing season.

• Steady gains: The U.S. apartment market posted five straight months of occupancy and rent growth, though Sun Belt markets remain under pressure from elevated new supply. 

• Valuation gap: Public investors are valuing coastal apartment portfolios at cap rates above 6%, creating a sharp pricing gap with private buyers still transacting in the 4% to 5% range. 

• Financing flexibility: Madison Capital secured $223M in bridge financing for a Sun Belt multifamily portfolio, gaining flexibility to capitalize on future growth opportunities.

• Capacity caution: U.S. manufacturing activity reached a multi-year high, but companies remain cautious on expansion as excess capacity and rising costs limit new investment.

• Microbay expansion: WareSpace expanded to 25 locations nationwide with an 82,000 SF Los Angeles industrial acquisition aimed at serving growing demand for small-bay warehouse space. 

• Dallas pickup: BakerTriangle acquired a 403,000 SF Dallas warehouse from Nuveen, underscoring continued investor demand for industrial assets in the Metroplex.

• Retail squeeze: Strong retailer demand and limited new construction are tightening the retail market, boosting rents and investor interest in necessity-based centers. 

• Growth sprint: Five Below posted a 32.5% sales jump and plans to open 150 stores this year as strong customer demand fuels rapid expansion.

• Bowtie beauty: Ulta Beauty signed a $400M, 15-year lease for the entire 26K SF building at 1551 Broadway to open a four-story experiential Times Square flagship in 2027, replacing American Eagle. 

• Retro revival: Pizza Hut is reviving its iconic 1980s dine-in experience across dozens of locations to attract customers through nostalgia and boost sales.

• Perk divide: US companies are increasing spending on executive perks like private jets, security and luxury relocations, widening the gap between top leaders and rank-and-file workers. 

• Habit rebound: Downtown foot traffic posted its first annual gain in over a year as office commutes, dining and social routines gradually return, while malls remain more reliant on promotions and holiday-driven visits. 

• Brickell benchmark: Peter Thiel’s family office signed an 18K SF lease at 830 Brickell for roughly $250/SF, setting a new record for Miami office rents. 

• Sunshine shift: South Florida’s office construction boom is being fueled by companies relocating from higher-tax states, helping drive one of the nation’s strongest office development pipelines.

• Olympic buildout: A Utah special district plans to raise $380M in high-yield municipal bonds to fund luxury real estate and infrastructure projects around Park City Mountain ahead of the 2034 Winter Olympics. 

• Rate resilience: US hotel performance rebounded after Memorial Day, with RevPAR rising 6.5% as strong room rates continued to offset softer demand.

📈 CHART OF THE DAY

CRE Trivia (Answer)🧠

Brascan Corporation. The firm originated in 1899 as a Brazilian utility company before pivoting into global real estate and infrastructure.

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