Together with

Good morning. CRE CLO distress levels continue to ease, hitting their lowest point of 2025. But don’t overlook the sharp rise in non-performing matured loans, now representing 43% of all maturing debt.

Today’s issue is brought to you by Hines—reimagining partnerships and transforming portfolios into platforms.

🎙️This Week on No Cap: Winston Fisher joins to talk about turning a 100-year-old firm into the creative force behind AREA15.

👉 Never miss an episode — Listen & Subscribe on Apple | Spotify | Amazon | YouTube

Market Snapshot

*Data as of 11/14/2025 market close.

Distress Dip

TOGETHER WITH HINES

Beyond Square Footage: Building Resilient Portfolios Through Consolidation and Integration

In a new article, Whitney Burns, Global Head of Client Partnerships at Hines, explains how successful occupiers are choosing integration over fragmentation to achieve global scale, efficiency, and long-term value.​

Highlights include:

• Fewer partners mean shorter decision cycles and compressed timelines.

• Multi-market deals drive cost efficiencies across portfolios.

• Global occupiers gain operational efficiency with centralized billing, unified reporting, and consistent service.

Learn how Hines is reimagining partnerships and transforming portfolios into platforms.

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

• Missed tax deductions: A Look-Back Study helps property owners reclaim unclaimed depreciation and 179D savings without amending tax returns. Discover how to unlock retroactive tax benefits for your properties. (sponsored)

• Bigger nest egg: The IRS is boosting the 401(k) contribution cap to $24,500 in 2026, giving retirement savers more room to grow their tax-advantaged investments.

• Shutdown hangover: The end of the record-setting 43-day federal shutdown offers temporary relief for D.C., but deeper economic challenges continue to weigh on the region. 

• Employment engine: Orlando topped all major U.S. apartment markets in five-year job growth at 24.8%, fueled by a 51.4% surge in Leisure and Hospitality jobs. 

• RICO real estate: Core Club has accused developer Michael Shvo and his German partners of racketeering, escalating a luxury real estate feud over alleged fraud and misused funds. 

• Private data: With inflation reports stalled by the government shutdown, economists are leaning on private estimates to fill the gap. 

• Builder slowdown: Construction backlogs slipped in October, with small firms struggling as data center work props up larger contractors.

• Balanced bounce: Multifamily is stabilizing as supply eases and steady demand supports a rebound in rent growth, per Colliers. 

• Treatment first: The Trump administration plans to overhaul HUD's homelessness policy, shifting billions from permanent housing to addiction treatment. 

• Tenant bait: Miami developers are adding lavish perks to stand out in an oversupplied market, even as rent growth stalls and concessions climb. 

• Rent heatwave: Manhattan rents rose 7% to $4,600 in October, defying national cooling trends as strong demand and rent freeze plans push market rates higher. 

• Sale finalized: Elme Communities sold 19 multifamily properties to Cortland for $1.6B and secured a $520M loan. 

• Debt warning: Rising credit card and auto loan delinquencies suggest mounting financial strain, especially among younger renters. 

• Yield shift: Multifamily investors are pivoting from core assets to value-add plays, seeking higher returns amid a recovering market, looser credit, and recalibrated risk tolerance.

• Small bay boom: Small-bay industrial real estate is outperforming its big-box peers with lower vacancies, higher rent growth, and strong investor demand. 

• Storage surprise: Yardi raised self-storage forecasts after uncovering more projects underway than anticipated, despite the overall slowdown. 

• Price of entry: DFW’s industrial market remains red-hot, but newcomers are being told to overpay to get in. 

• Power mirage: Phantom data centers are distorting U.S. energy forecasts, as developers reserve massive power supplies for projects that may never materialize. 

• Southeast surge: The Southeast led the U.S. in Q3 multi-tenant industrial sales with $5.2B in deals, as private buyers drove a resilient market marked by strong demand and rising cap rates. 

• Brick by brick: LEGO has broken ground on a $360M, 2M SF distribution center in Virginia to support its upcoming U.S. factory. 

• Power play: Toyota has launched production at its $13.9B North Carolina battery plant — its first outside Japan — while pledging another $10B in U.S. investment.

• Hemp crackdown: A federal bill limiting THC in hemp products could wipe out the $8B industry and upend millions of SF of Texas retail space. 

• Brand blunder: Trump's call to deploy troops to Chicago’s “Miracle Mile” baffles real estate pros, as the real Mag Mile rebounds with new tenants and falling vacancy. 

• Leadership handoff: Walmart CEO Doug McMillon will step down after 10 years, handing leadership to John Furner as the company braces for an AI-driven retail future.

• Auto hospitality: Ford is rolling out a hospitality-focused dealership redesign called Signature 2.0, swapping sterile showrooms for hotel-like spaces. 

• Center snag: Peachtree Group has provided a $35M loan to Core Acquisitions for its $44M purchase of the Deerbrook Shopping Center.

• Texas price tag: Goldman Sachs’ Dallas campus cost has surged past $700M, reflecting rising construction costs and luxury office amenities.

• EV epicenter: Scout Motors will open a $206M HQ in Charlotte, bringing 1,200 jobs and supporting its $2B EV plant in South Carolina.

• STEM surge: Austin, Seattle, and Denver lead the nation in STEM job growth momentum, as RCLCO’s 2025 STEMdex highlights the growing economic influence of tech-focused cities. 

• Prestige leases: Brookfield Properties and Neuberger Berman have signed new leases at Rosewood Court in Uptown Dallas, pushing the Class A+ office building to 98% occupancy. 

• Island easing: Caribbean hotel performance is stabilizing post-pandemic, with softer occupancy and pricing pressure in some markets, even as new luxury supply and cruise tourism continue to grow. 

• Ownership options: PPHE Hotel Group’s majority shareholders are exploring potential capital moves or partial exits.

📈 CHART OF THE DAY