Together with

Good morning. November's rental data shows progress, with on-time payments hitting 83.7%. It's the third straight month of gains, though late payments continue to cloud the picture.

Today’s issue is brought to you by AirGarage—get a clearer view of your parking operations so you keep more of what your asset earns.

🎙️This Sunday on No Cap: Jack and Alex chat with Jon Schultz, Co-Founder and Managing Principal of Onyx Equities.

Make sure to subscribe on Apple | Spotify | YouTube so you don’t miss it.

CRE Trivia 🧠

Which Southern markets made their first appearance in the renter-engagement top 30 in Q3 2025, reflecting rising interest in secondary cities?

(Answer at the bottom of the newsletter)

Market Snapshot

*Data as of 11/26/2025 market close.

Collection Trends

TOGETHER WITH AIRGARAGE

What’s Really in Your Parking Agreement

Most owners assume their parking agreement is straightforward — until they realize how much revenue disappears in the fine print.

Hidden fees, vague expense pass-throughs, and misaligned incentives can quietly drain NOI year after year.

Our Parking Agreements Guide reveals:

• The 3 most common contract types — and how each impacts your returns

• Hidden costs and red flags that quietly eat into performance

• Real-world examples showing where owners lose profit

• A step-by-step framework to evaluate operators and negotiate better terms

If parking contributes to your property’s income, this short guide could save you thousands — and years of lost NOI.

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

• Shrinking deduction window: With the Section 179D deduction set to expire for new builds after June 30, 2026, savvy owners and designers are racing to lock in their tax savings now. (sponsored)

• Free speech: RealPage is suing New York, arguing a new law banning rent pricing advice from its software violates free speech rights.

• Steady upside: REITs look set for steady 2026 gains, driven by strong fundamentals, easing rates, and sector-specific opportunities.

• Stale supply: Sellers are delisting homes at a record pace as weak demand and price drops make waiting more appealing than selling at a loss. 

• Wealth shift: Luxury home prices soared in Sun Belt cities over the past decade, far outpacing gains in traditional markets like New York. 

• Rate stalemate: The Fed may hit a historic tie on rate cuts next month amid growing internal division.

• Degree distress: College grads now make up a record share of the unemployed, as layoffs, outsourcing, and AI reshape the job market.

• Increased caps: FHFA raised 2026 multifamily loan caps for Fannie and Freddie by 20% to $176B, reinforcing affordable housing goals while keeping workforce housing loans exempt. 

• Housing boost: Hunt Capital’s $277M Tax Credit Fund 52 will create or preserve 1,540 affordable homes across 10 states.

• Shared space: Outpost and June Homes merged to create the nation’s largest coliving operator, with 4,000 units and a focus on sustainable growth.

• R&D growth: Nokia is investing $4B in U.S. manufacturing and R&D to fuel its AI and connectivity growth.

• Yield compression: Industrial CRE loan spreads hit a new 2025 low, signaling lender confidence despite tight margins and broader economic uncertainty.

• Strategic selloff: EQT sold an 8.7M SF industrial portfolio in 2025’s largest U.S. deal, signaling a strategic shift toward logistics.

• Data disruption: A $10B data center near Waco promises major growth but alarms locals over environmental and community impact.

• Refi of the day: Crow Holdings and Constellation Real Estate secured a $74M refi for their 799K SF El Paso industrial campus. 

• Desert demand: Phoenix leads in industrial builds with 17.2M SF underway, even as deliveries slow and vacancy ticks up.

• Holiday inflation: PNC’s Christmas Price Index rose 4.5% in 2025, with labor costs and gold prices pushing festive gift totals to over $218K.

• Redevelopment strategy: A 100-acre redevelopment of Gaithersburg’s former Lakeforest Mall moves ahead with 1,600 units, 1.2M SF of commercial space. 

• Modern malls: Modern malls with diverse tenants, experiences, and events are thriving as holiday spending is set to exceed $1T for the first time. 

• Tenant targeting: Landlords are using data and storytelling to attract ideal retail tenants and boost leasing success.

• Investment dip: Dallas retail investment fell by half in Q3, but steady fundamentals and rising absorption suggest underlying market stability. 

• Closures coming: Dick’s Sporting Goods plans to close underperforming Foot Locker stores as part of a $2.5B turnaround effort following its recent acquisition. 

• Creative reuse: Zero Empty Spaces is turning vacant retail into affordable artist studios, revitalizing malls, and drawing new foot traffic for landlords.

• Leasing lift: Rising demand and limited new supply are fueling a U.S. office market recovery, though gains vary sharply by city.

• Midtown footprint: EQT has expanded its footprint to 115K SF at SL Green’s redevelopment of 245 Park Avenue.  

• Investor return: Los Angeles office sales hit $2.6B YTD, the strongest pace since 2022, as investors jump on deep discounts, some up to 80%. 

• Industrious growth: Industrious is expanding in San Francisco with a new 17K sf lease, betting on rising office demand. 

• Development revival: NYC office development is surging as demand climbs and investor confidence returns.

• Wild investment: Billionaire Larry Ellison bought South Florida’s only drive-thru safari for $30M, adding to his growing real estate and conservation-focused portfolio. 

• Golden collapse: Jack Nicklaus’ golf course company filed for bankruptcy after a $50M judgment, aiming to protect its brand and operations amid ongoing legal battles.

📈 CHART OF THE DAY

CRE Trivia (Answer)🧠

According to RentCafe, Birmingham and Knoxville both broke into the top 30 for the first time, highlighting growing renter demand in more affordable Southern metros.