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Good morning. After a steep decline in property prices, lower borrowing costs are drawing investors back to commercial real estate, hinting that the market may be reaching its bottom.

Today’s issue is brought to you by AirGarage—maximize parking revenue and NOI at your property.

🎙️ No Cap by CRE Daily: Jonathon Barkl, CEO of AirGarage, shares how he went from college student to disrupting the parking industry, evolving AirGarage into a full-stack, tech-first parking operator.

Market Snapshot

*Data as of 9/25/2024 market close.

MARKET PULSE

TOGETHER WITH AIRGARAGE

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The average property owner that switches to AirGarage from a legacy parking operator sees a 23% NOI increase in the first year. 

Talk to AirGarage today and let us show you how we can increase your NOI with a custom proposal for your parking facility.

*Please see the advertising disclosure at the bottom of this newsletter.

• Little relief: Falling interest rates are offering little solace to commercial real estate owners who borrowed heavily during low-rate periods and now face severe refinancing challenges.

• Fear and Greed: The Q224 Burns + CRE Daily Fear and Greed survey results are in. Download your FREE copy to see how sentiment is shifting.

• Rate cut debate: Fed’s hinted at more aggressive rate cuts ahead, though concerns about a potential recession and inflation complicate things.

• Global push: Brazil's BTG Pactual acquired Miami-based Greytown Advisors, adding $1B in assets to its platform as part of a broader push into wealth management for high-net-worth clients.

• Playing defense: Climate hazards may end up costing S&P Global REIT Index firms $110B by 2030, and potentially a staggering $559B by 2050.

• Bubble warning: Miami tops UBS's global real estate bubble risk index, with prices up nearly 50% since 2019, as global housing markets brace for lower interest rates.

• Midwest milestone: Midwest multifamily markets outperform the national occupancy rate, with Detroit seeing significant growth and Milwaukee showing up as a top performer.

• Top commutes: Columbus, OH, ranks as the city with the best commutes, offering the shortest, cheapest, and most vibrant travel experience, according to a Lyft survey of US cities.

• Renter rights: Invitation Homes (INVH) just settled with the FTC for $48M due to misleading and deceptive tactics, including undisclosed fees and unfair evictions.

• Delays ease: While fewer construction delays are reported in multifamily projects, economic uncertainty and permitting issues continue to hinder new starts, which are down 37% YoY.

• Bigger building: Overton Moore Properties is set to build a 760 KSF industrial complex in Livermore, with Lam Research pre-leasing 60%, as part of a broader plan to expand its NorCal footprint.

• Logistics coup: Montea acquired a large french logistics portfolio with 17 assets from Tristan Capital Partners for nearly €150M with a 5.6% yield.

• Growth spree: Prologis (PLD) acquired a 441+ KSF logistics portfolio in Raleigh-Durham's Research Triangle Park, fully leased with 32-ft clear heights, for $80.2M.

• REIT shake-up: Inland Real Estate Income Trust (INRE), with over 7 MSF of shopping centers worth $1.4B, is undergoing a strategic review and could end up selling.

• Mattress madness: Tempur Sealy (TPX) is ready to sell nearly 180 stores to Mattress Warehouse to address antitrust concerns, will retain over 2.8K stores.

• Entertainment expansion: The Hollywood Park development in Inglewood, anchored by SoFi Stadium, adds four new tenants, including a restaurant and salon.

• Towers transformed: Vanbarton Group is about to buy 77 Water St., a 26-story Manhattan office tower for $95M, to convert it into 600 rental units.

• Brickell boom: Elliott Investment Management neared a $450M deal for the 701 Brickell office tower in Miami's surging commercial property market.

• From riches to bargains: Related Fund Management sold the 181 KSF Hell's Kitchen office at 321 West 44th Street for $40M, a significant discount.

• Big news: Delta Corp (DAL) surged 6.77% after demerging its hospitality and real estate business into Delta Penland (DPPL), aimed at boosting capital flexibility and shareholder value.

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*Please see the advertising disclosure at the bottom of this newsletter.

📈 CHART OF THE DAY

FACT OF THE DAY

The Burj Khalifa in Dubai is not only the tallest building in the world, but its foundation alone required 110,000 tons of concrete, enough to fill 43 Olympic-sized swimming pools! This highlights the incredible engineering feats behind modern commercial real estate.