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Good morning. This year's Thanksgiving-to-Cyber Monday shopping spree brought 197 million shoppers, exceeding expectations despite a shorter holiday shopping window and an influx of early sales.

Today’s issue is brought to you by Pacaso—democratizing access to vacation home ownership.

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Market Snapshot

*Data as of 12/05/2024 market close.

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• Emerging cities: Smaller US metros like Madison, Fargo, and Provo lead the way as affordable, livable alternatives to major urban centers, blending job growth, culture, and outdoor amenities.

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• Strategic acquisitions: Blackstone's (BX) real estate head highlights Europe and India as prime targets for investment during global market uncertainty, capitalizing on logistics and data infrastructure.

• Fraud fallout: Nightingale CEO Elie Schwartz faces federal charges for allegedly embezzling $54M from CrowdStreet investors.

• Rate cut uncertainty: Fed officials remain noncommittal on a December rate cut, citing economic variability, unimplemented policies, and the need for careful recalibration.

• Institutional momentum: Large investors are seizing opportunities in CRE, with major deals in multifamily, retail, and adaptive reuse signaling renewed confidence amidst stabilized valuations.

• Estate tax evasion: Nvidia (NVDA) CEO Jensen Huang uses complex trust and charitable strategies to shield $8B from estate taxes, showing how the ultrawealthy preserve dynastic wealth.

• Crypto-friendly pick: President-elect Trump plans to nominate Paul Atkins as SEC chair, signaling a deregulatory stance favorable to digital assets and a rollback of strict post-crisis financial reforms.

• Debt opportunity: SL Green Realty (SLG) secured $250M from Canadian pension fund CDPQ for a $1B debt fund targeting distressed office and retail credit in New York City.

• Modular savings: Thrive Living’s modular construction for its Chinatown apartment project is expected to cut costs by 15%, delivering 376 units aimed at workforce and affordable housing.

• Antitrust pushback: RealPage seeks the dismissal of the DOJ’s antitrust lawsuit over its rent-pricing algorithm, arguing that there is insufficient evidence of monopoly power.

• Living at the mall: Developers are transforming underutilized malls into residential hubs, addressing the US housing crisis while blending housing with retail and amenities.

• HUD nomination: Industry leaders commend Trump’s pick of Scott Turner as HUD Secretary, highlighting his work with Opportunity Zones, while housing advocates urge for a focus on affordability.

• San Antonio deal: Harvest Equities acquired The Place at Castle Hills, a 680-unit renovated multifamily property, as multifamily transaction activity in the region shows signs of slowing.

• Stockpiling surge: Anticipated tariffs on imports from Canada, Mexico, and China are driving construction firms to stockpile materials, boosting demand for industrial outdoor storage.

• Deal dropped: Prologis (PLD) backed out of a $24M bid for the former Raiders practice facility in Oakland after due diligence, leaving the city facing a $115M budget deficit.

• Pharmacy closures: Independent pharmacies are facing twice the closure rate of big chains, as economic pressures hit underserved rural and low-income areas hardest.

• Brooklyn redevelopment: A Laboz-led group acquires Downtown Brooklyn’s historic Macy’s store, planning to transform the 440 KSF property into world-class retail and entertainment.

• Restaurant revival: Former TGI Fridays CEO Ray Blanchette bid $30.5M to acquire 9 locations, including high-performing airport eateries, as the chain restructures under Chapter 11.

• Offices evolve: National office vacancy rates dipped to 20% in Q3, but peaks are expected in late 2025 or early 2026, as CBDs remain central to regional trends with wide variance across markets.

• Foreclosure battle: RFR is facing foreclosure on 17 State St., a 42-story Manhattan office tower, after failing to refinance a $180M mortgage, adding to a string of financial disputes.

• Nuclear shift: Brookfield Properties (BN) transitions its 8 MSF DC-area office portfolio to nuclear power, slashing greenhouse gas emissions by 85% while aligning with tenant sustainability goals.

• Federal downsizing: The GSA plans to offload 8 buildings totaling 1.5 MSF across 7 states and DC, aiming to save taxpayers $475M over a decade while exploring adaptive reuse opportunities.

• Travel surge: Post-Thanksgiving air travel hit a new record with over 3.09M TSA check-ins on 12/01, while US hotel occupancy rose modestly YoY in November, though still behind pre-pandemic levels.

📈 CHART OF THE DAY