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Good morning. Boxing legend Floyd Mayweather is dropping $402M on a massive affordable housing deal in Manhattan. Plus, Prologis beat Q3 earnings expectations as the logistics market shows signs of improvement.

Today’s issue is brought to you by Redwood Living—explore real estate investments in the Midwest BTR market.

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*Data as of 10/16/2024 market close.

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• Pointing the bipartisan finger: Both Kamala Harris and JD Vance agree that large corporate investors are behind the current housing crisis, though experts argue the real issue lies elsewhere.

• Inflation insights: Goldman Sachs (GS) forecasts a September PCE inflation rate of 2.04%, potentially meeting the Fed's 2% target, pending an official data release.

• Private equity pouncing: The $200B US disaster-restoration industry has seen exponential growth, with predictions it will reach $92B by 2029.

• Mortgage trends: Life insurance CRE mortgages saw a 0.68% total return in Q2, with a 1.17% income return offset by a -0.49% appreciation return.

• Tax trade-offs: New York’s 485x developer incentive faces challenges as rising labor costs and affordability mandates reduce its appeal despite significant tax abatements.

• Reaching new heights: A Harvard report suggests changing codes to allow 6-story buildings with single staircases, potentially adding 130K housing units in MA.

• Paying the price: Suffolk Construction is suing Behring for $20M over delays at a luxury apartment complex, with multiple breaches alleged.

• Property troubles: Aby Rosen's RFR Holding is in contract to sell a Gowanus site for over $160M, turning a third profit.

• Embracing nuclear: Amazon Web Services (AMZN) is partnering with Dominion Energy to invest $500M in small modular reactors (SMRs) to power data centers.

• Outlook narrows: Industrial property giant Prologis (PLD) raised its earnings and revenue but trimmed its 2024 outlook due to tighter warehouse supply amid slowing construction.

• Vacancy surge: The Dallas-Fort Worth industrial vacancy rate rose 11%, and search availability for projects delivered in the past two years topped 30%.

• Holiday spending forecast: The NRF forecasts that this year’s holiday spending will reach $979.5B to $989B, up 2.5–3.5% from 2023, citing inflation concerns as a factor.

• Mall money makeover: URW's Westfield Montgomery mall received a $350M loan extension, which now values the mall at $353M with an outstanding balance of $333.5M.

• Manhattan's resurgence: Manhattan's office market is enjoying a strong rebound, with 5.7 MSF of net absorption in 3Q23, a 17.8% availability rate, and $76.55 PSF rents.

• Coworking collaboration: WeWork partners with Vast Coworking Group, offering WeWork Workplace users access to 75+ locations in 50+ new markets.

• Suburban shuffle: Magna Hospitality Group is selling its Skokie & Evanston hotels acquired during the pandemic, reflecting post-pandemic suburban market trends.

• Hotel harmony: A new licensing bill exempts small hotels under 100 rooms and allows for the subcontracting of "highly technical" work.

📈 CHART OF THE DAY