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Good morning. When rent’s too high, some renters get creative—and not in a good way. From fake pay stubs to AI-generated employment letters, rental fraud is becoming a serious (and sophisticated) problem for landlords.

Today’s issue is brought to you by QC Capital—invest in one of the most resilient and scalable asset classes in CRE.

🎙️ This Week on No Cap: Westmount’s Cliff Booth joins Jack and Alex to share how four decades in industrial real estate taught him to stay ahead of trends and why, even today, relationships matter most.

Market Snapshot

*Data as of 10/09/2025 market close.

Renter Fraud

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• Funding in days: Get term sheets in under 24 hours and funding in as little as 3 days. Atlas Invest empowers investors, brokers, and developers to get funded faster than ever. (sponsored)

• Capital magnet: The Southeast captured the lion’s share of CRE investment in early 2025, leading the nation in project volume and capital.

• Liquidity shift: Real estate secondaries are booming as investors seek cash and GPs use them to extend deals amid tight fundraising conditions.

• Collateral damage: A failed California landlord’s overleveraged portfolio has triggered lawsuits and loan losses for regional banks like Zions and Western Alliance.

• Elite entry: David Rubenstein and other ultra-wealthy backers have raised $303M for a new fund targeting U.S. multifamily and industrial real estate.

• Safety shortfall: A Bronx housing explosion spotlighted federal oversight failures as HUD laid off its inspection team during the government shutdown.

• Hospital hit list: Medical Properties Trust waged a covert campaign to intimidate critics and protect its reputation amid growing scrutiny of its troubled hospital deals. 

• CLO selloff: CLO ETFs saw $516M in outflows—the largest since April—as credit fears and corporate defaults unsettle investors.

• Steady stretch: Multifamily rents grew modestly in September, with gains in nearly 70% of U.S. markets and annual growth holding steady at 2.0%. 

• Quiet climb: Mid-size metros and suburbs across the U.S. are quietly posting the fastest rent increases, outpacing national averages by a wide margin.

• Legal roadblock: Florida’s highest court rejected Two Roads Development’s appeal, halting its $150M condo termination and raising broader doubts about forced buyouts.

• Owner outlook: Top multifamily leaders say adaptability, local expertise, and disciplined underwriting are key to navigating a still-uncertain but opportunity-rich market. 

• Priced out: With NYC rents hitting $3,599, nearby cities like Yonkers and Toms River are emerging as realistic homeownership alternatives for cost-burdened renters.

• Great acceleration: Tech giants leased more U.S. data center capacity last quarter than in all of 2024, with Oracle alone securing a staggering 5.4GW.

• Drug buildout: Merck has broken ground on a $3B pharmaceutical manufacturing center in Elkton, VA, as part of its massive U.S. expansion push.

• Stabilizing sector: The San Francisco Peninsula’s industrial market is stabilizing as AI, robotics, and logistics firms backfill space vacated by traditional manufacturers.

• Digital dividend: Principal Asset Management sold a Georgia data center for $253M, nearly quadruple its 2022 purchase price.

• Shopping spree: DLC Management and DRA Advisors are acquiring 10 grocery-anchored shopping centers across the West Coast for $625M.

• Beyond sales: Retail success is increasingly measured by how well a store drives digital engagement, reflects consumer values, and captures omnichannel loyalty.

• Retro revival: A 1950s-era, Googie-style landmark in Covina has hit the market for $2.5M, offering buyers a rare chance to own and repurpose a piece of LA’s midcentury architectural history.

• Leadership docked: New CEO Matt Partridge brings a fresh vision to Lower Manhattan's Seaport Entertainment Group, reshaping its future just weeks into the role.

• Nashville bet: Shorenstein Properties has acquired Nashville’s nearly fully leased Gulch Union building, its ninth office deal in 14 months.

• Anchor secured: BXP is close to signing C.V. Starr for 300,000 square feet at its under-construction 343 Madison Ave. project.

• Deal surge: Manhattan’s Q3 sales hit $4.9B—up 191% from Q2—driven by major office trades like RXR’s $1.1B buy at 590 Madison.

• Foot traffic: Office foot traffic rose in September to 26.3% below 2019 levels, driven by new in-office mandates and the return of fall routines. 

• Upgrade strategy: With high vacancy and slow sales, Los Angeles office owners are investing in property upgrades to stay competitive.

• Skyline statement: Banc of California is doubling down on downtown Los Angeles with a new 11-year lease and skyline naming rights atop 865 S. Figueroa.

• Sonder spirals: Alternative hospitality company Sonder is racing to restructure its debt out of court as mounting losses, evaporating cash, and a CEO exit put it on the brink of bankruptcy.

• High life: Proper Hospitality and Lincoln Property Co. will bring a 34-story luxury hotel, residences, and wellness-focused social club to Uptown Dallas by 2029.

📈 CHART OF THE DAY