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Good morning. Commercial and multifamily mortgage debt continues to climb, reaching nearly $4.8 trillion by the end of 2024, according to the Mortgage Bankers Association (MBA).

Today’s issue is brought to you by Agora— simplify investor onboarding with a seamless, guided experience that turns interest into commitment.

Market Snapshot

*Data as of 03/18/2024 market close.

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• Your CRE event roadmap: Map out your year with the ultimate guide to the top CRE conferences, networking forums, and investment summits.

• Sell it like: Ryan Serhant is expanding into commercial real estate sales and marketing, leveraging technology and social media to trade buildings.

• Special servicing surge: Office and retail loans primarily drove the CMBS special servicing rate surge, climbing 45 bps to 10.32% in February.

• Stadium-sized offer: Blake Investment Partners made a $260M cash offer for Tropicana Field in St. Petersburg, including $60M for repairs and plans for a mixed-use redevelopment post-2028.

• Tariffs raise costs: Tariffs on imported materials like lumber and appliances are bumping up construction and remodeling costs, potentially adding $7.5K–$10K to new home prices.

• Rate cuts expected: Economists forecast two Fed rate cuts in 2025, starting in September, amid slower growth and persistent inflation concerns tied to Trump’s trade policies.

• Shaking things up: Bill Pulte changed the Fannie Mae (FNMA) and Freddie Mac (FMCC) boards, appointing himself chairman and adding new members, including a SpaceX engineer.

• Easier to rent: The national rent-to-income ratio has dropped to 27.6%, driven by rising wages and home inventory, but affordability remains a real challenge, especially in high-cost metros.

• Hitting new highs: Manhattan rents hit a record $4.5K, while Brooklyn and Northwest Queens also saw serious growth, with bidding wars surging by over 30%.

• Dallas living: Kairoi Residential landed $62M in refinancing for its Boheme apartments in Oak Cliff, with rent growth expected as the Dallas multifamily pipeline slows.

• Expanding in Houston: Americold (COLD) acquired a $127M cold storage facility in Baytown, TX, adding 35.7K pallet positions and expanding its US warehouse capacity.

• Betting on smaller: Chicago developers are targeting small-scale industrial properties under 50K SF to meet growing demand for last-mile facilities, capitalizing on limited supply and higher rents.

• Denver slowdown: The Denver industrial pipeline slows as vacancies peak, with builders focused on preleased or build-to-suit projects, which should tighten supply and drive up rents.

• Music City deal: Regency Centers (REG) bought Brentwood Place for $119M, expanding its Nashville portfolio with a 320K SF property anchored by Nordstrom Rack, Total Wine, and TJ Maxx.

• Brand reinvention: Dick's Sporting Goods (DKS) opens its first House of Sport stores, averaging 120K–140K SF and offering unique amenities like rock climbing walls and ice rinks.

• Last-ditch effort: Dallas officials met with Saks executives in a final attempt to keep Neiman Marcus’ downtown flagship open, but Saks maintained its decision to close remains unchanged.

• Going private: Sycamore Partners' $23.7B acquisition of Walgreens could lead to store closures, lease renegotiations, and property repurposing, significantly reshaping its real estate strategy.

• Not looking great: Paramount (PGRE) paid millions to CEO Albert Behler’s companies last year, raising concerns over compensation and related-party transactions.

• Expanding to Irving: Nasdaq opened its first regional HQ in Irving, Texas, focusing on financial crime management and technology, signaling Dallas’ growing role in the financial sector.

• To the highest bidder: RXR Realty (RXR) defaulted on a $315M mortgage, with Barings acquiring the 340 Madison Ave. office tower for $161M after a foreclosure auction.

• Shifting Spring Break: Miami Beach’s efforts to calm spring break crowds have led to higher occupancy in hotels catering to families and corporate travelers, despite lower demand from partygoers.

CHART OF THE DAY