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Good morning. A calmer credit environment may set the stage for moderate property value gains—even with policy noise in the background. Plus, a familiar tax tool for real estate is set to become permanent—if Congress can bridge key gaps.

Today’s issue is sponsored by Smart Plan AI—create AI-powered testfits & 3D virtual tours in seconds.

🎙️ This week on No Cap podcast, Crowd Street’s leadership opens up in a rare interview about rebounding from its fraud scandal while doubling down on tech, trust, and a bold expansion into private markets.

Market Snapshot

*Data as of 06/17/2025 market close.

Midyear Outlook

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• Midwest multifamily: Join a free investor webinar hosted by Neutral about multifamily development investment opportunities in Milwaukee, Wisconsin. (sponsored)

• Holding steady: While economic uncertainty looms on the horizon, CRE is showing signs of resilience and adapting sector by sector.

• Strategic buyers: REITs remain well-positioned for future growth, with stronger balance sheets and access to capital.

• Luxury living: With housing costs now consuming up to 71% of median income, experts say shelter is shifting from a basic need to a luxury good.

• Tech migration: Palm Beach County is reinventing itself as a national innovation hub, attracting tech, life sciences, and finance firms.

• Tax boost: Senate Republicans’ budget proposal extends full bonus depreciation for CRE and manufacturing investments, while pushing the debt ceiling to $5T.

• Permit drop: US housing permits declined for the fourth straight month in April, with multifamily down 1.5% YoY.

• Live webinar: Today at 4 pm ET, Brad Johnson, CIO at Vintage Capital, breaks down how top investors are still betting on mobile home parks—and why the math still pencils. (sponsored)

• Energy risk: The potential shutdown of the EPA’s Energy Star program could disrupt operations for multifamily owners.

• Austin stability: Austin's apartment market defies gravity, as record-breaking supply is met with equally strong demand, keeping occupancy stable and rents above pre-pandemic levels.

• DC reinvestment: PSP Investments secured a $1B refinancing for The Wharf in DC, a 3.6 MSF megadevelopment.

• Strategic acquisition: Kennedy Wilson and Japanese partners acquired The Danforth for $173M, banking on Seattle’s RTO momentum and limited new apartment supply.

• Capital commitment: Marc Andreessen is increasing his investment in Adam Neumann’s residential real estate startup, Flow.

• Warehouse squeeze: Global warehouse costs rose 3.6% over the past year, but growth is slowing as demand cools in key markets.

• Coastal assets: Bridge Logistics secured a $355M loan from Invesco to refinance a 24-property, 2.45M SF industrial portfolio along the East and West coasts.

• Debt swap: ILPT has secured $1.16B in fixed-rate mortgage financing to replace floating-rate debt and cut interest costs across a 101-property industrial portfolio.

• Chapter 11: Home décor retailer At Home has filed for bankruptcy, citing US tariffs and $2B in debt, with plans to restructure and keep most of its 260 stores open.

• Spending slowdown: Retail sales fell 0.9% in May, the steepest decline since January, as consumers pulled back after rushing to buy big-ticket items ahead of new tariffs.

• Factory fallout: Efforts to reshore US apparel manufacturing are being undercut by immigration raids targeting the very workforce the industry depends on.

• Supply shrinkage: For the first time in 25 years, US office supply is contracting as developers accelerate conversions to housing.

• West Coast bet: Cohen & Steers has invested $300M into Hudson Pacific Properties, acquiring 43% of its new public stock offering as a strategic play on the West Coast office market rebound.

• Capital resilience: Despite rising vacancies and limited construction, Washington, DC, remains the nation's second-leading market for office sales.

• Corporate commitment: Verizon is bucking the hybrid trend with a string of major office renewals and expansions across the US.

• Sublease surge: Austin’s office market is grappling with over 900K SF of trophy space up for sublease as Big Tech firms downsize commitments they never fully used.

• Hotel upgrade: Downtown Houston’s JW Marriott is adding 56 rooms and revamping a long-vacant historic building to prep for a World Cup tourism surge in 2026.

• Profit pressures: US hotel profits are stagnating as operating costs outpace revenue growth, even as demand ticks up in top-tier markets.

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📈 CHART OF THE DAY