CRE Daily

2024 was a tough year for U.S. retail, with 𝟳,𝟯𝟮𝟳 𝘀𝘁𝗼𝗿𝗲 𝗰𝗹𝗼𝘀𝘂𝗿𝗲𝘀. Many household names, like Party City, Rite Aid, and Bed Bath & Beyond, shuttered for good, while others, like Macy’s, scaled back significantly to stay afloat. Here’s what happened: 👉𝗗𝗶𝘀𝗰𝗼𝘂𝗻𝘁 𝗮𝗻𝗱 𝗱𝗿𝘂𝗴𝘀𝘁𝗼𝗿𝗲𝘀 𝘀𝘁𝗿𝘂𝗴𝗴𝗹𝗲𝗱 under inflation and falling foot traffic. 👉 𝗢𝗳𝗳𝗶𝗰𝗲 𝘀𝘂𝗽𝗽𝗹𝘆 𝗰𝗵𝗮𝗶𝗻𝘀 𝗱𝗼𝘄𝗻𝘀𝗶𝘇𝗲𝗱 as remote work reshaped demand. 👉 𝗘-𝗰𝗼𝗺𝗺𝗲𝗿𝗰𝗲 𝗱𝗼𝗺𝗶𝗻𝗮𝘁𝗲𝗱, sidelining many brick-and-mortar stores. Not all is lost—chains like Aldi and Dollar Tree expanded, proving that adaptability is key in today’s retail landscape. 🔗 Full story in the comments.

Fort Worth is officially the fastest-growing city in Texas, surpassing Austin with a 7.7% population growth since 2020. Here’s why it matters: 🏢 𝗢𝗳𝗳𝗶𝗰𝗲 𝗥𝗲𝘀𝗶𝗹𝗶𝗲𝗻𝗰𝗲 Downtown vacancy rate of just 11.5%, far below Dallas’ 26%, with 10% rent growth YoY. 🏗️ 𝗠𝗶𝘅𝗲𝗱-𝗨𝘀𝗲 𝗗𝗲𝘃𝗲𝗹𝗼𝗽𝗺𝗲𝗻𝘁 Cultural District welcomes a 2 MSF project blending residential, retail, office, and hospitality. 🚚 𝗜𝗻𝗱𝘂𝘀𝘁𝗿𝗶𝗮𝗹 𝗚𝗿𝗼𝘄𝘁𝗵 Logistics hubs like the Triad 820 center reflect booming industrial demand. Fort Worth has turned into a hot spot for real estate investment and economic expansion. 🔗 𝗚𝗲𝘁 𝗮𝗹𝗹 𝘁𝗵𝗲 𝗱𝗲𝘁𝗮𝗶𝗹𝘀 𝗶𝗻 𝘁𝗵𝗲 𝗰𝗼𝗺𝗺𝗲𝗻𝘁𝘀.

Despite falling valuations and soaring vacancies, 𝗨𝗦 𝗼𝗳𝗳𝗶𝗰𝗲 𝘀𝗮𝗹𝗲𝘀 𝗿𝗲𝗯𝗼𝘂𝗻𝗱𝗲𝗱 𝗶𝗻 𝟮𝟬𝟮𝟰, rising 17% YoY, signaling a shift in the market. What’s driving the resurgence? 1️⃣ 𝗟𝗮𝗻𝗱𝗺𝗮𝗿𝗸 𝗗𝗲𝗮𝗹𝘀 Major transactions like One Vanderbilt ($4.7B stake) and 701 Brickell ($443M sale) show strategic moves in trophy properties. 2️⃣ 𝗖𝗿𝗲𝗮𝘁𝗶𝘃𝗲 𝗙𝗶𝗻𝗮𝗻𝗰𝗶𝗻𝗴 Debt-to-equity conversions, like Pacific Corporate Towers, highlight adaptive recovery strategies. 3️⃣ 𝗟𝗲𝗮𝘀𝗶𝗻𝗴 𝗨𝗽𝘁𝗶𝗰𝗸 National office leasing grew 11.5% in Q3, though vacancies remain high at 19%. 🔗 𝗚𝗲𝘁 𝗮𝗹𝗹 𝘁𝗵𝗲 𝗱𝗲𝘁𝗮𝗶𝗹𝘀 𝗶𝗻 𝘁𝗵𝗲 𝗰𝗼𝗺𝗺𝗲𝗻𝘁𝘀.

HomeStreet Bank's $906M loan portfolio sale to Bank of America highlights the commercial real estate market's surprising stability in a challenging environment. Here’s what’s driving the story: 👉 𝟴% 𝗗𝗶𝘀𝗰𝗼𝘂𝗻𝘁:HomeStreet sold $906M CRE loans with minor write-downs. 👉 𝗦𝘁𝗿𝗮𝘁𝗲𝗴𝗶𝗰 𝗙𝗼𝗰𝘂𝘀: Proceeds will cut debt and fund 2025 growth. 👉 𝗖𝗥𝗘 𝗦𝘁𝗮𝗯𝗶𝗹𝗶𝘁𝘆: Smaller discounts reflect market resilience. Despite challenges, banks are managing portfolios effectively, keeping deep discounts at bay and forcing investors to recalibrate expectations. 🔗 Full story in the comments below.

A $285M loan from Tyko Capital is funding the 56-story waterfront condo tower, redefining branded luxury living in Miami. Here’s what you need to know: 👉𝗘𝘅𝗰𝗹𝘂𝘀𝗶𝘃𝗲 𝗨𝗻𝗶𝘁𝘀: 70 condos from $5M, with 50% already sold. 👉𝗖𝗵𝗲𝗳-𝗗𝗲𝘀𝗶𝗴𝗻𝗲𝗱: Mario Carbone kitchens and private dining experiences. 👉𝗕𝗼𝗹𝗱 𝗣𝗹𝗮𝗻: Completion by 2027 for affluent buyers Villa Miami marks Major Food Group's first step into residential real estate, blending its iconic culinary reputation with high-end development. 𝗙𝘂𝗹𝗹 𝘀𝘁𝗼𝗿𝘆 𝗶𝗻 𝘁𝗵𝗲 𝗰𝗼𝗺𝗺𝗲𝗻𝘁𝘀.

Commercial and multifamily lending surged 59% YoY in Q3, fueled by lower interest rates and rising demand in key sectors. 🚑 𝗛𝗲𝗮𝗹𝘁𝗵𝗰𝗮𝗿𝗲: +510% in loan originations 🛒 𝗥𝗲𝘁𝗮𝗶𝗹: +82% 🏭 𝗜𝗻𝗱𝘂𝘀𝘁𝗿𝗶𝗮𝗹: +57% CMBS lending soared 260%, while depository loans rose 69%. The rebound highlights strong investor confidence, but rising long-term rates could slow momentum ahead. 🔗 Full story in the comments. Source MBA

Variety Wholesalers is stepping in to acquire 200–400 Big Lots stores, keeping the brand alive and preserving jobs for employees. Full story here 👇 https://lnkd.in/eqDsd2kp

The rapid growth of data centers in Atlanta is raising big concerns. According to Green Street, total data center inventory grew by an average of 43% annually in 2023 and 2024. ↳ 𝗕𝘂𝘁 𝘄𝗶𝘁𝗵 𝗵𝗼𝘂𝘀𝗶𝗻𝗴 𝘀𝗵𝗼𝗿𝘁𝗮𝗴𝗲𝘀 𝗮𝗻𝗱 𝘀𝘁𝗿𝗮𝗶𝗻𝗲𝗱 𝘂𝗿𝗯𝗮𝗻 𝗿𝗲𝘀𝗼𝘂𝗿𝗰𝗲𝘀, 𝗰𝗶𝘁𝘆 𝗹𝗲𝗮𝗱𝗲𝗿𝘀 𝗮𝗿𝗲 𝘀𝘁𝗲𝗽𝗽𝗶𝗻𝗴 𝗶𝗻: 1️⃣ Data centers banned near transit hubs to prioritize housing and public spaces. 2️⃣ Advocates call for balancing tech expansion with livability. 3️⃣ AI and cloud computing demand surges, straining resources. With AI demands rising, Atlanta’s at a crossroads. Will tech growth outpace livability? 👉 Full details in the comments.

U.S. commercial real estate prices are showing signs of stability. CoStar’s value-weighted composite index gained 1.3% in November, marking its fourth consecutive increase—the longest streak of growth since mid-2022. While prices are still 2.5% below last year’s levels, the decline has eased from a steep 12.4% drop recorded between mid-2023 and mid-2024. Read today's newsletter (link in comments) 👇

After nearly 40 years, Party City is 𝗰𝗹𝗼𝘀𝗶𝗻𝗴 𝗶𝘁𝘀 𝗱𝗼𝗼𝗿𝘀 𝗳𝗼𝗿 𝗴𝗼𝗼𝗱. The iconic party supply retailer is shutting down all 700+ stores by February 2025. 𝗪𝗵𝘆 𝗶𝘁 𝗵𝗮𝗽𝗽𝗲𝗻𝗲𝗱: 1️⃣ Years of financial struggles, including a helium shortage. 2️⃣ Post-2023 bankruptcy efforts failed to stabilize. 3️⃣ Rising costs and shifting consumer trends challenged its ability to adapt. Party City's closure 𝘀𝗽𝗮𝗿𝗸𝘀 𝗱𝗼𝘂𝗯𝘁𝘀 about the future of specialty retail amid economic pressures and shifting consumer habits. 🔗 Full story in the comments.