CRE Daily

With rent delinquencies on the rise, property owners are turning to AI tools like EliseAI to make things smoother—for them, at least. EliseAI is used in over 1M apartments across the U.S., handling: 🔹Rent reminders; 🔹Late payments; 🔹Drafting eviction notices. Major players like Brookfield, Equity Residential, and AvalonBay Communities are all jumping on this trend. ❌ But not everyone’s thrilled. Some tenants might not even realize they’re speaking with a bot. Plus, automating things like eviction notices could create legal and regulatory headaches. What do you think? Are AI-powered solutions the future of rent collection, or do they need a more human touch?

Single-family construction is on the rise, while multifamily projects are hitting a slowdown. Developers are clearly shifting focus, and the numbers show why. 📈 𝗦𝗶𝗻𝗴𝗹𝗲-𝗳𝗮𝗺𝗶𝗹𝘆 𝗽𝗲𝗿𝗺𝗶𝘁𝘀 are booming, especially in the West (+13.6%) and Texas (+9.7%). Phoenix leads the pack with an impressive 29% jump. 📉 Meanwhile, 𝗺𝘂𝗹𝘁𝗶𝗳𝗮𝗺𝗶𝗹𝘆 𝗽𝗲𝗿𝗺𝗶𝘁𝘀 are down 16.2% this year, with the South and West seeing steep declines. But there’s a silver lining—New York City saw a 50% increase in multifamily permits, driving growth in the Northeast. This shift highlights the growing demand for single-family homes, but will it be enough to ease housing shortages? 🔗 Full story in the comments.

Flagstar Financial, formerly New York Community Bank, is trying to shed $343M in distressed office and retail loans—and it’s no surprise why. NYC’s commercial real estate market is struggling, with office vacancies climbing and retail demand lagging. 𝗞𝗲𝘆 𝗽𝗿𝗼𝗽𝗲𝗿𝘁𝗶𝗲𝘀 𝗶𝗻 𝘁𝗵𝗶𝘀 𝘀𝗮𝗹𝗲 𝗶𝗻𝗰𝗹𝘂𝗱𝗲: 🏢 𝟮𝟮𝟬 𝗙𝗶𝗳𝘁𝗵 𝗔𝘃𝗲𝗻𝘂𝗲: Stellar Management’s $80M loan. 🏢 𝟭𝟯𝟬 𝗙𝗶𝗳𝘁𝗵 𝗔𝘃𝗲𝗻𝘂𝗲: Olnick Organization’s $77M refinancing deal. 🏙️ 𝟯𝟳-𝟭𝟴 𝗡𝗼𝗿𝘁𝗵𝗲𝗿𝗻 𝗕𝗼𝘂𝗹𝗲𝘃𝗮𝗿𝗱: RXR’s Long Island City property with a $66M loan. Is offloading debt the right move, or does this signal deeper issues ahead for NYC’s CRE market? Share your thoughts below.

In a year of challenges for commercial real estate, multifamily properties continue to shine. What’s behind the sectors success? 📈 𝗙𝗮𝘀𝘁𝗲𝗿 𝗴𝗿𝗼𝘄𝘁𝗵 According to Moody’s, multifamily NOI has grown 61.5% since the GFC, far outpacing the 26.7% growth in core commercial sectors like office, industrial, and retail. 🏠 𝗦𝘁𝗲𝗮𝗱𝘆 𝗱𝗲𝗺𝗮𝗻𝗱 Consistent housing demand and lower exposure to market volatility make multifamily a safer bet for investors navigating today’s uncertainties. ⚖️ 𝗕𝗲𝘁𝘁𝗲𝗿 𝘀𝘁𝗮𝗯𝗶𝗹𝗶𝘁𝘆 While 28.7% of apartment properties saw severe NOI drops of 40% or more, that’s better than the 46.3% seen in other commercial properties. 👉 Multifamily continues to prove its worth as the frontrunner in CRE.

This year, we’ve seen 7,100 stores close across the U.S.—that’s up 69% from last year. Even major players like Family Dollar and CVS aren’t immune to the challenges shaking up retail. So, what’s going on? 💸 𝗥𝗶𝘀𝗶𝗻𝗴 𝗖𝗼𝘀𝘁𝘀: Running stores is pricier than ever, and some can’t keep up. 🛒 𝗦𝗵𝗼𝗽𝗽𝗶𝗻𝗴 𝗛𝗮𝗯𝗶𝘁𝘀: Online shopping and bargain-hunting are taking over. 📉 𝗢𝘂𝘁𝗱𝗮𝘁𝗲𝗱 𝗦𝘁𝗿𝗮𝘁𝗲𝗴𝗶𝗲𝘀: Some brands are failing to meet customer expectations. Retail is evolving fast, and those who can’t adapt are being left behind. 𝗙𝘂𝗹𝗹 𝘀𝘁𝗼𝗿𝘆 𝗶𝗻 𝘁𝗵𝗲 𝗰𝗼𝗺𝗺𝗲𝗻𝘁𝘀.

25% of investors report increasing their CRE exposure in the latest 4Q24 Fear & Greed Index, the highest share in over a year. Most CRE investors are still in wait-and-see mode due to uncertainty, largely pertaining to rates and policy. Here are some of the key takeaways: 📊 65% of CRE investors are holding steady 📈 25% are increasing exposure—the highest in over a year 📉 Most remain cautious, citing rate uncertainty and tariff concerns 𝗪𝗵𝗮𝘁 𝗼𝘂𝗿 𝘀𝘂𝗯𝘀𝗰𝗿𝗶𝗯𝗲𝗿𝘀 𝗮𝗿𝗲 𝘀𝗮𝘆𝗶𝗻𝗴: "Rates will likely stay near current levels. Commercial real estate needs more time to recover and see how new economic policies, like tariffs, play out." You can download the findings here 🔗 https://lnkd.in/eybSNNZi

Can apartments carry the load in fixing America’s housing crisis? While single-family housing struggles to recover, 𝗺𝘂𝗹𝘁𝗶𝗳𝗮𝗺𝗶𝗹𝘆 𝗺𝗮𝗿𝗸𝗲𝘁𝘀 𝗮𝗿𝗲 𝗱𝗲𝗹𝗶𝘃𝗲𝗿𝗶𝗻𝗴 𝗻𝗲𝘄 𝘀𝘂𝗽𝗽𝗹𝘆—and fast. Multifamily housing starts hit 530K units annually in 2022, far outpacing single-family growth, according to US Census Bureau. The success stems from: 1️⃣ 𝗚𝗦𝗘 𝗘𝘅𝗽𝗮𝗻𝘀𝗶𝗼𝗻 Government-sponsored enterprises offer stable, low-cost financing and improve market transparency. 2️⃣ 𝗣𝗿𝗶𝘃𝗮𝘁𝗲 𝗘𝗾𝘂𝗶𝘁𝘆 𝗚𝗿𝗼𝘄𝘁𝗵 Large private equity funds bring liquidity, innovation, and investor confidence. 3️⃣ 𝗙𝗹𝗲𝘅𝗶𝗯𝗶𝗹𝗶𝘁𝘆 Minimal rent regulations allow multifamily markets—especially in the Southeast and Southwest—to grow supply and moderate rent hikes. 𝗪𝗵𝗮𝘁 𝗿𝗼𝗹𝗲 𝗱𝗼 𝘆𝗼𝘂 𝘁𝗵𝗶𝗻𝗸 𝗺𝘂𝗹𝘁𝗶𝗳𝗮𝗺𝗶𝗹𝘆 𝗽𝗹𝗮𝘆𝘀 𝗶𝗻 𝘀𝗵𝗮𝗽𝗶𝗻𝗴 𝘁𝗵𝗲 𝗳𝘂𝘁𝘂𝗿𝗲 𝗼𝗳 𝗨𝗦 𝗵𝗼𝘂𝘀𝗶𝗻𝗴? Let’s discuss below 👇

SoftBank CEO Masayoshi Son will invest $100B into US AI startups and infrastructure. The plan is to: 💼 𝗖𝗿𝗲𝗮𝘁𝗲 𝟭𝟬𝟬,𝟬𝟬𝟬 𝘁𝗲𝗰𝗵 𝗷𝗼𝗯𝘀 over the next 4 years. 💡𝗔𝗰𝗰𝗲𝗹𝗲𝗿𝗮𝘁𝗲 𝗔𝗜 𝗮𝗱𝗼𝗽𝘁𝗶𝗼𝗻 through investments in startups and data centers. 🏗 𝗕𝗼𝗼𝘀𝘁 𝗶𝗻𝗳𝗿𝗮𝘀𝘁𝗿𝘂𝗰𝘁𝘂𝗿𝗲 for chip manufacturing and energy solutions. 📊 𝗗𝗼𝘂𝗯𝗹𝗲 𝗱𝗼𝘄𝗻 𝗼𝗻 𝗶𝗻𝗻𝗼𝘃𝗮𝘁𝗶𝗼𝗻, building on SoftBank’s $50B 2016 commitment. With AI revolutionizing industries, this bold move aims to position the US as a global tech leader. Will it pay off?

The Real Estate Board of New York (REBNY) is suing to block the FARE Act, a law requiring landlords—not tenants—to pay broker fees when brokers list rental units. REBNY’s lawsuit hinges on several key claims: ❌ It violates brokers’ First Amendment rights by discouraging rental listings. ❌ It interferes with private contracts between landlords, tenants, and brokers. ❌ It oversteps local authority and conflicts with state laws. With rents rising and affordability in the spotlight, the stakes are high for tenants, landlords, and brokers. Read the full story in the comments.👇

According to 𝗠𝗼𝗼𝗱𝘆’𝘀 𝗥𝗮𝘁𝗶𝗻𝗴𝘀, loan modifications for non-owner-occupied CRE borrowers jumped 65 bps in the last 9 months, with smaller banks seeing a staggering 217% spike. Here’s why: 📈 𝗢𝗳𝗳𝗶𝗰𝗲 𝗱𝗲𝗹𝗶𝗻𝗾𝘂𝗲𝗻𝗰𝗶𝗲𝘀 climbed to 11.2% in November—3x higher than early 2023. 🏢 𝗠𝘂𝗹𝘁𝗶𝗳𝗮𝗺𝗶𝗹𝘆 faces mounting pressure as rising costs outpace slowing rent growth. 💰 𝗕𝗮𝗻𝗸𝘀 are nearing their limits, while private capital demands more and gives less. 𝗧𝗵𝗲 𝗯𝗼𝘁𝘁𝗼𝗺 𝗹𝗶𝗻𝗲? Delinquencies are rising, lenders are losing patience, and distressed assets are expected to hit the market hard in 2025. Is this the opportunity investors have been waiting for?