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Good morning. The office REIT at the center of SEC scrutiny is pushing ahead with a possible sale, and some of New York’s biggest landlords want in.

Today’s issue is brought to you by InvestNext—learn how to capture your share of the $7 trillion retail capital opportunity.

We’re tracking whether CRE investors are leaning in or pulling back across multifamily, industrial, retail, and office—take the Q3 Fear & Greed Survey today to get early access to the results and our new Hold vs. Sell Deal Analyzer.

Market Snapshot

*Data as of 08/28/2025 market close.

Bidding Wars

TOGETHER WITH INVESTNEXT

Raising Capital from Retail Investors

$7 trillion in retail capital is entering alternatives through 2032, and many of these investors are looking to invest in real estate.

Yet most mid-sized GPs are still focused on institutional fundraising.

Here's what the data shows:

• 70% of high-net-worth individuals would invest in alternatives if properly approached

• Retail investors represent only 16% of alternative AUM despite holding 50% of global investable assets

• Industry reports show mid-market funds demonstrating stronger momentum with retail investors than mega-funds

The firms that understand retail investor expectations and act accordingly will capture new capital sources while those that don’t will miss out on this massive opportunity to acquire new investors.

Download your copy of How to Capture Retail Investor Capital

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

• The future of BTR: After a record-breaking 2024, BTR construction has settled into a steadier pace in 2025, yet demand remains strong. Read how institutional capital is fueling expansion into new markets. (sponsored)

• Campus sale: Metropolitan College of New York plans to sell its Manhattan campus to CUNY for $40M to ease $60M in debt.

• Tokenized CRE: MosaicAI, a new platform specializing in fractional investment of commercial real estate using AI and blockchain, has announced the first investment to launch using its services is coming soon.

• Margin momentum: Community banks posted strong early 2025 earnings, but rising delinquencies and tariffs could slow growth ahead. 

• Station takeover: The Trump administration is moving to assume management of Washington, D.C.’s Union Station, citing safety and disrepair concerns.

• Investor payday: Trump’s plan to privatize Fannie Mae and Freddie Mac could reward investors and expand liquidity for multifamily lending. 

• Portfolio scale: Investors need sizable, diversified portfolios to mirror market-level rent growth, as submarket performance can vary widely, especially in high-dispersion markets like Manhattan and Boston. 

• Property count: US public REITs owned an estimated 570K properties at the end of 2024, with data centers and retail assets showing the strongest YoY growth.

• Richmond reigns: Richmond tops US metros for single-family renters with strong jobs, affordability, and space.

• Future supply: Dallas multifamily permits jumped to 17,684 in July, hinting at the next big supply wave.

• Related returns: Related Fund Management made its first post-spinoff South Florida buy with a $116M Delray Beach apartment deal.

• Tenant victory: Equity Residential refunded $25K to LA renters after a months-long strike over utility billing practices. 

• Market movers: Smaller Texas cities like Midland, Odessa, and Waco are projected to outpace big metros in multifamily rent growth over the next five years.

• Activist stake: Elliott Investment Management became a top Rexford Industrial shareholder, joining another activist investor as the REIT’s stock rallies on takeover speculation.

• Tariff impact: Factory visits dipped after new tariffs, hinting at inventory drawdowns and supply chain adjustments. 

• Chip boom: Over $50B in semiconductor projects are turning North Texas into a fast-growing tech and development hub.

• Size matters: Smaller and older industrial buildings hold occupancies below 5%, far outperforming newer large-scale warehouses where vacancies have climbed to 21%. 

• Leasing paradox: Industrial leasing is strong in 2025, but rising vacancies and falling absorption reveal a market strained by tariffs, bankruptcies, and supply chain consolidation.

• Pension pushback: Ruby Liu is clashing with Canadian pension fund landlords over 25 former Hudson’s Bay leases, with disputes over her retail plan versus redevelopment ambitions.

• Brand bet: Kohl’s Q2 sales slid again, but the retailer is banking on higher-margin private labels and tighter cost controls to drive its turnaround. 

• Prime property: A private partnership bought San Diego’s 74K SF “Headquarters” shopping center, formerly the city’s police HQ, for nearly $35M.

• Early exit: RTO mandates are driving earlier employee departures, reshaping office use and transit demand.

• Legal leases: Law firms leased 5.9M SF in 1H25, the strongest first-half volume since 2018.

• HQ relocation: Newmark is relocating its Chicago office to Salesforce Tower, leasing 24K SF starting in 2026.

• Hotel selloff: Braemar Hotels & Resorts is initiating a sale of its 14-property luxury portfolio, citing weak REIT valuations and ongoing activist pressure.

• Tourism boost: Texas bought the historic Crockett and Menger hotels to expand and integrate the Alamo visitor experience. 

• Visitor economy: Twenty years after Hurricane Katrina, New Orleans rebuilt itself into a hospitality powerhouse driven by billions in hotel investment.

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

📈 CHART OF THE DAY