New kid on the 1031 exchange block

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

Banks, auto parts stores lead retail cap rate declines link

• Cap rates for banks fell by 15 basis points and auto parts stores dropped by 9 bps in Q1, signaling stronger investor demand or lower perceived risk. In contrast, convenience store cap rates increased by 7 bps, suggesting weakening investor sentiment in that segment.

• Property supply declined significantly across asset types—casual dining and banks were down 12%, and car wash listings fell by 31%. One-third of current listings are newly available, showing tight market dynamics.

• Walgreens plans to close over 500 stores after an $8.6 billion loss, while CVS is shifting to smaller-format outlets. Aldi, meanwhile, is expanding with 225 new stores and selling 170 after acquiring Winn-Dixie.

Rental vacancy rate hits highest level since 2018 link

• The U.S. rental vacancy rate reached 7.1% in Q1 2025, the highest since late 2018 and up 50 basis points from a year ago. Vacancy was highest in the South at 8.6%, and lowest in the Northeast at 5.1%.

• Larger multifamily buildings (5+ units) had the highest vacancy rate at 8.2%, while single-unit rentals were at 6.3%. This suggests more supply pressure in apartment-heavy developments.

• Median asking rent hit $1,468 nationwide, with the West highest at $1,777 and the Midwest lowest at $1,201. Homeowner vacancy remains tight at just 1.1%, showing continued demand for owned housing.

Washington set to become third state with statewide rent control link

• Washington passed a law capping rent hikes at 10% or 7% plus inflation, with a lower 5% cap for manufactured housing land leases. The law excludes buildings less than 12 years old and includes new tax incentives for affordable housing development.

• Maryland counties like Montgomery and Prince George’s also implemented strict caps, limiting increases to 6% or less. Rent control measures are now spreading across multiple U.S. states, following early adopters like Oregon and California.

• A Redfin survey shows 82% of Americans support rent increase limits, highlighting strong public backing. However, developers remain concerned rent caps reduce incentives to build, potentially worsening housing shortages in cities like Boston and Portland.

Meet Deferred, the new kid on the 1031 exchange block link

• Only 10% of eligible real estate deals use 1031 exchanges, despite the $100 billion volume they represent each year. Many avoid it due to outdated, paperwork-heavy processes.

• Deferred uses AI to automate the exchange process and charges no fees, instead earning from interest on client-held funds. This makes 1031 exchanges more accessible to individual investors, not just institutions.

• In 2024, 20% of repeat homebuyers kept their prior property as a rental or investment, fueling demand for easier exchanges. Some metros saw 3% to 8% of listed homes convert into rentals within two months.

Omaha’s Industrial Market Surges With Record Net Absorption link

• Omaha saw industrial net absorption hit 477,000 square feet in Q1 2025, up from just 21,600 the previous quarter. That’s a 22x jump, showing a major spike in industrial demand.

• Vacancy dropped to 3%, and major leases included OTR Engineered Solutions (153,000 sq. ft.) and Wesco (109,720 sq. ft.). This reflects tightening space across the metro despite fewer projects under construction.

• Lease rates dipped to $7.29 per sq. ft. from a record $7.71, even as Omaha’s location keeps demand strong. The city’s 3% unemployment rate is one of the lowest in the country, but trade policy uncertainty could test its resilience.

257

257 is an AI-driven real estate platform that provides fast property valuations, underwriting support, and market insights to help investors and professionals make data-informed decisions quickly and efficiently.

Residential construction trends. New Hotspots!

2025 Q1 sales trends across all asset classes

Top 10 Best and Worst Days to Sell a Home

Investors are returning to the office sector

Student housing market surges with $8.5B in deals and growing investor interest

Proptech Startups That Just Got Funded

Charted: How American Life Expectancy Compares to Its Peers

Whole House Awning!

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