Medical Outpatient Bldgs, Opportunity zones

In partnership with

New here? Join the newsletter (it's free).

Medical outpatient buildings see sales drop 44% in Q1 link

• Medical outpatient building sales fell to $1.5 billion in Q1 2025, a 44% drop from Q4 2024 and the lowest quarterly volume since 2016. High interest rates and construction costs are keeping new supply limited despite strong demand.

• Occupancy for medical outpatient buildings rose to 92.8% across the top 50 U.S. markets, up from 91% in early 2021. Triple-net rents hit a record high of $25.80 per square foot, although rental growth slowed to 1.8%.

• Demand for outpatient care is projected to grow by 10.6% over the next five years, compared to just 0.9% for inpatient care. Cities facing the strongest pressure include those with aging populations and rising disease prevalence.

Opportunity zones doubled affordable apartment growth link

• Opportunity Zones helped add about 68,000 more apartment units than before the program, valued at over $18 billion based on CoStar’s average sale price per unit. In 2024, 23% of all apartments under construction were located within Opportunity Zones.

• Between 2017 and 2024, apartment supply in Opportunity Zones rose 151% to 143,219 units, compared to a 63% gain across all U.S. markets. Non-OZ markets only grew by 51.5% during the same period, highlighting the program’s outsized impact.

• By the end of 2024, over $40 billion was raised across 2,033 Qualified Opportunity Funds, with three-quarters of the equity targeted at residential projects. There is growing pressure to pass a new "Opportunity Zone 2.0" to fix regulatory flaws and extend the tax benefits beyond 2026.

Prologis expects increased warehouse demand because of trade wars link

• Prologis reports that many customers are accelerating shipments and urgently looking for overflow warehouse space to manage tariff volatility. Utilization rates at some 3PLs have jumped from 83% to over 90% as companies seek more flexible storage options.

• Demand for logistics space is being driven by businesses focused on food, beverage, industrial manufacturing, and essential consumer goods. Companies with China-based production are facing the most uncertainty and disruption.

• Prologis expects Mexico and Brazil to benefit as production shifts away from China, creating new long-term demand for warehouses. Despite some tariff pauses, the lack of a steady trade backdrop is pushing companies to secure more space quickly.

Eight submarkets in the nation’s largest apartment markets have rents below $1,000 link

• Cleveland’s Euclid submarket has the lowest average rent nationally at $839 per month, followed by Northeast St. Louis County at $907. Three Memphis submarkets—South Memphis, West Memphis, and North Memphis—also made the list with rents between $938 and $969.

• Two Houston submarkets, Sharpstown/Fondren Southwest and North Central Houston, have average rents just under $1,000 at $982 and $997 respectively. West San Antonio rounds out the group with average rents of $983 per month.

• In contrast, eight of New York City’s 10 submarkets have the highest rents nationally, with the Lower East Side topping the chart at $6,213 per month. This highlights the stark rent gap between major cities like New York and lower-cost areas in the South and Midwest.

• click on the link to see the rest of the list,

Colossis

Colossis is an AI-powered tool that can make property images look stunning. It can declutter room, re-arrange furniture and add decor, all in 8K resolution.

How will the trade war affect commercial construction?

Retail CRE in transition: consumer shifts, CMBS exposure, & e-commerce growth

This city leads U.S. markets with the largest hotel construction pipeline

Economic, immigration policies likely to impact U.S. hospitality market

Cargo slowdown threatens these asset classes

Proptech Startups That Just Got Funded

Ranked: Daily Incomes of the Richest and Poorest in 25 Countries

Sold in 2020 for little over $1.3M

Link to the listing

That's all folks. If these emails aren't for you anymore, you can unsubscribe here.

Cheers,

Vidit

Instagram

P.S - Read past newsletters here