Industrial vacancies hit 11-year high

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Older Americans now hold 70% of all U.S. household wealth link

• In 2001, people aged 55+ owned 50% of all U.S. household assets—today they own 70%. That’s a 20-point shift in under 25 years, driven by demographics and asset accumulation.

• This age group is gaining a disproportionate share of financial power as the U.S. population ages. It suggests wealth—and investment influence—is concentrating among older households.

• The shift may impact housing demand, retirement asset flows, and who controls liquidity in real estate markets going forward. Younger buyers and renters may face more competition for capital and opportunities.

Industrial vacancies hit 11-year high—even as leasing jumps link

• Industrial vacancy climbed to 6.6% in Q2 2025—its highest since 2014—despite an 8.5% jump in leasing activity, signaling rising supply or tenant pullback. Net absorption was just 3.5 million sq. ft., the lowest since Q1 2010.

• 18 of the 61 tracked markets posted negative absorption, suggesting regional softness even amid broader leasing demand from 3PLs and manufacturers.

• New construction completions dropped again, hitting 64.6 million sq. ft.—the second straight quarter under 70 million—though warmer weather sparked a slight uptick in new starts.

Office Market at a Turning Point—Tenants Still in Control but Signs of Recovery Emerging link

• U.S. office vacancy hit a new high at 18.4%, but the pace of increase is slowing, with only 4.1 million SF delivered in Q2—the lowest new construction in over a decade. That could ease future pressure on vacancies.

• Manhattan is leading the recovery, with 3.5 million SF absorbed in Q2, far outperforming other markets. Overall net absorption for the U.S. was slightly negative in Q2, breaking a 3-quarter growth streak.

• Asking rents are flat at $37.18/SF this quarter but up 1.1% year-over-year, with increased building sales helping reset rent expectations. Investors are stepping back in, but tenants still have the upper hand across most markets.

2025 Housing Forecast: No Crash Coming, But Don’t Expect Cheap Deals link

• National home prices are still projected to rise 1.5–2% this year, despite a slowdown. Even markets seeing price dips are only down around 3.5%, far from the 20% crash in 2008.

• Mortgage rates aren’t expected to drop much—experts forecast they'll stay in the mid-6% range through the end of 2025. Waiting for lower rates could mean missing out on buying opportunities.

• Since 2020, U.S. home prices have risen 55% nationwide, and that equity gain is helping buffer minor market corrections. The market is cooling, not collapsing.

Texas leads U.S. reshoring surge—Could housing demand explode next? 

• Texas topped the list for reshored jobs in 2025, with over 40,000 announced positions, driven by companies like Walmart (300,000 jobs nationally), Apple (20,000), and Tesla ($5.5B investment). This shift is outpacing foreign direct investment for the first time since 2010.

• Tariffs are playing a massive role in the reshoring wave, up 455% year over year—by far the biggest driver behind companies returning manufacturing to the U.S.

• Housing markets in states like Texas, South Carolina, and Michigan could see steady price growth, especially in suburban areas near reshoring job hubs. But in tighter secondary markets, even 2,000 to 5,000 new jobs could push rents and prices up quickly.

California’s Cold Storage Market Is Heating Up Fast link

• California controls 17% of U.S. cold storage revenue and space, with the broader Western U.S. accounting for 25%—driven by agriculture, pharma, and online grocery demand. Roughly 60% of U.S. cold warehouses are over 40 years old, sparking a wave of modern ESG-compliant developments.

• Cold storage rents in California range from $16 to $25 per square foot, hitting $28–$32 in top areas like LA. New construction costs range from $250 to $350 per square foot, and cap rates sit in the mid-5% to low-6% range.

• Online grocery sales will hit 21.5% of all grocery sales in 2025, with 11.7% annual growth through 2027. That’s accelerating demand for cold storage in dense metros and port cities, where most speculative construction is concentrated.

Tool of the day - Cedar

Cedar unifies public datasets with AI-powered modeling to generate multiple early-stage building configurations for any parcel, giving developers quick, data-driven insights into project feasibility and potential returns.

AI Real Estate Stock ReAlpha Soars 347% — Hype or Hidden Gem? link

ReAlpha’s AI-powered vacation rental platform stunned Wall Street with a 347% stock surge — raising big questions about its tech, traction, and long-term value.

3 Real Estate Niches Where AI Hype Is Already Paying Off link

Morgan Stanley points to logistics, data centers, and CRE underwriting as AI-fueled sectors already delivering measurable returns — far beyond the buzz.

AI Agents in Real Estate: What’s Real, What’s Hype in 2025 link

While some AI tools are streamlining leasing and lead gen, experts warn of inflated expectations and the long road to fully autonomous real estate agents.

RealPage Acquires Rexera to Supercharge Its AI Leasing Suite link

With Rexera’s AI tech, RealPage aims to automate more of the leasing lifecycle — from lead nurturing to renewal — across its massive rental housing platform.

Charted: The U.S. Cities Gaining and Losing Corporate HQs

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