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Good morning. Memphis is fast becoming an industrial heavyweight, thanks to massive EV investments and surging tenant and investor interest. Plus, a controversial new tax bill could throw a lifeline to RealPage.

Today’s issue is sponsored by Agora—experience the future of real estate investment management.

Market Snapshot

*Data as of 05/27/2025 market close.

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• Vacancy solution: Multifamily operators are turning persistent vacancy into profit by embracing furnished mid-term stays, generating up to $2,000/unit/month without adding operational burden. (sponsored)

• Job slump: Bay Area and several Midwest metros continued to post job losses in April, even as top markets like NY and Houston led national employment gains.

• Property dip: Commercial prices fell across all asset types in April, marking the first broad decline in over a decade.

• Op Zone debate: Congress is considering reforms to the Opportunity Zone program to better steer investment into rural and low-income areas.

• Rate uncertainty: CRE finance sentiment plunged in Q1 amid rising fears of stagflation, with volatile tariff policies clouding hopes for interest rate cuts and dampening investor confidence.

• User lockout: Proptech startup Landa, once promising real estate investing for as little as $5, has gone dark, as it faces lawsuits over defaulted loans and missing rent payments.

• Federal shield: A controversial tax bill could curb local bans on rent-pricing algorithms, offering RealPage and landlords a legal edge, but not immunity from lawsuits.

• Leading the way: Brooklyn, Jersey City, and Queens led NYC’s apartment growth over the past decade, offering lower rents and solid access to Manhattan.

• Fraud uncovered: California investment manager Kenneth Mattson has been charged with running a 15-year, $46M Ponzi scheme involving fake real estate partnerships, defrauding hundreds of investors.

• Workforce boost: Beacon Hill will start construction in July on a 112-unit all-workforce housing project in Princeton under Florida’s Live Local Act.

• A-Rod resort: Alex Rodriguez is leading a $1B development in the Dominican Republic’s Playa Grande, planning 577 condos and villas to boost luxury tourism.

• Top deals: Q125 saw over $1.1B in major apartment sales, led by MG Properties’ $309M Park 12 purchase in San Diego.

• Mega campus: Prologis is stepping in to lead the $17B Project Sail data center campus near Atlanta, one of Georgia’s largest-ever tech developments.

• Texas tech: Primary Digital secured $11.6B to back the world’s largest AI data center, part of OpenAI and Oracle’s Stargate project in Texas.

• Southern expansion: JPMREIT acquired 15 industrial properties across Texas, Virginia, and Florida for $124M, expanding its Southern U.S. footprint amid strong warehouse demand.

• Amazon refi: Invesco secured a $60M refinancing for its Amazon-leased, 1 MSF industrial facility in Riverside, CA.

• Rising prices: Retail fit-out costs rose 4% nationwide to an average of $155/SF due to increased mechanical expenses, labor shortages, and higher material costs.

• Retail impact: Lower US tariffs on Chinese goods are temporarily easing pressure on direct-to-consumer retailers, but recent duty exemption changes continue to drive supply chain shifts.

• Tech revival: AI firms are projected to lease 2.7 MSF of San Francisco office space annually through 2030, potentially slashing the city’s 35.8% vacancy rate.

• DFW deal: AT&T signed a 12-year lease for 186 KSF in Richardson, TX, relocating its call center as part of a broader strategy to streamline operations.

• Bargain buy: Hall Equities Group is buying Walnut Creek’s Ygnacio Center for $111M,  a 47% discount from its 2018 sale.

• Sunset refi: Mani Brothers has refinanced its flagship 9000 W. Sunset Blvd. office tower in West Hollywood with a $125M loan from JPMorgan Chase.

• Midtown makeover: SL Green has filed plans to convert its 34-story office tower at 750 Third Avenue in Midtown East into 680 residential units.

• Weekend wins: US hotel performance ticked up mid-May as strong weekend demand, driven by events and graduations, boosted RevPAR in cities like Detroit, Chicago, and Charlotte.

• Theme war: Universal has opened Epic Universe, a $7B Orlando theme park and its first major US launch in two decades, intensifying competition with Disney.

📈 CHART OF THE DAY