How Banks Power Private Credit

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⚡ Snapshot: The 7/6 SOFR ARM saw the sharpest daily drop (-0.07%), and all major loan types moved lower day over day, pointing to a broad but modest cooling in rates.

How Banks quietly power the private credit boom link

• Banks supply leverage across the private credit stack, from subscription lines and SPVs to repo and NAV loans, giving them indirect exposure to private credit borrowers even as lending moves off bank balance sheets.

• Regulators including the IMF, ECB, and Fed warn these links can transmit and amplify shocks, especially as leverage, floating-rate debt, and opaque structures grow.

My take: This shows risk is not leaving the banking system, it is being reshuffled. If credit stress rises, losses can still flow back to banks, which matters for financial stability and how regulators think about the next downturn.

Walmart backs 3D printing, CRE construction scales up link

• Walmart and Alquist 3D built a nearly 8,000 sq ft store addition in Tennessee, the largest 3D-printed commercial building in the U.S., and plan to print more than a dozen new Walmart buildings.

• Sika will supply materials across Alquist’s pipeline, aiming to cut material and freight costs and support larger-scale, more sustainable commercial builds.

My take: This moves 3D printing from pilot to production in CRE. Investors should watch cost, speed, and labor impacts as volume ramps up.

Small tenants take over industrial leasing link

• Vacancy rose to 7.5% nationally in 2025, driven by softness in large logistics buildings, while small-bay spaces stayed tight and leased quickly, per Plante Moran.

• Leasing demand has shifted to 50,000–150,000 sq ft users like regional distributors and 3PLs, as big-box tenants pause after heavy 2021–23 supply.

My take: This is a reset, not a slowdown. Investors should expect faster absorption and pricing support in small and mid-bay assets, while big-box recovery stays slower.

Refis power strongest November locks in four years link

• Total mortgage locks fell 25% from October but rose 17% year over year, making November the strongest in four years, driven by rates near 6%. Rate-and-term refis jumped 223% year over year, while cash-out refis rose 29%.

• Purchase locks dropped 22% month over month and 6% year over year as high prices and tight inventory weighed on demand.

My take: This is still a refi-led market. Until rates move lower or inventory improves, purchase activity is likely to stay muted.

Home flipping returns sink to 23 percent, lowest since 2008 link

• Typical flipping ROI fell to 23.1% in Q3 2025, down from 29.8% a year ago, with median gross profit dropping to $60,000 as home prices stayed high.

• Flips made up 6.8% of sales, and major Texas metros like Austin, Dallas, and Houston saw single-digit returns.

My take: Flipping is shifting from a volume game. Investors need tighter buy prices and market-level discipline to make deals work.

PropTech Funding, Fresh Off the Wire

• A home equity investment fintech, Hometap raised $50M led by Gallatin Point Capital to scale its no-monthly-payment equity products and expand flexible financing options for homeowners.

• A UK-based AI underwriting platform for real estate investing, BuiltAI raised $6M in seed funding led by WorkBench.

New York expands senior tax relief, the real impact depends on local buy-in link

• New York raised the maximum senior property tax exemption from 50% to 65% of assessed value, which could save eligible seniors up to $300 per year, but only if their local government adopts the higher cap.

• Nearly 40% of New York homeowners pay $10,000 to $40,000 in annual property taxes, and many seniors remain asset rich but cash poor, with Social Security falling short by roughly $7,200 per year on basic expenses.

Tool of the day: Placer.AI

AI-powered location and foot traffic analytics platform for real estate and retail insights.

AI Robots Push US Property Ops Toward $8.7B Market link

PR Newswire reports that the US property management robotics market hit $4.4B in 2024 and is set to reach $8.7B by 2032. AI-driven robots now handle cleaning, security and inspections, cutting labor needs by up to 30 percent.

AI in CRE Starts With Clean, Trusted Documents link

PR Newswire reports that imkore launched Blueprint, a document audit and roadmap for CRE firms. The tool helps turn messy leases and compliance files into AI-ready data.

Lowe’s and Home Depot Use AI to Lock In Spend link

PYMNTS reports that Lowe’s rolled out an AI assistant to 1,700 stores, while Home Depot launched AI tools for project planning and blueprint takeoffs. The tools guide buyers and contractors from early plans to purchase.

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A Beautiful Brick Tudor

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Vidit

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