Office leasing rebounds, Flippers tighten margins, a castle for sale

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⚡ Snapshot: The 30 Yr. VA saw the largest daily uptick (+0.04%), while overall rates edged slightly higher across all loan types, continuing a mild upward momentum.

AI boom drives capex to record 60% of cash flow link

• Amazon, Google, Microsoft, Meta, and Oracle are now spending 60% of their operating cash flow on capex, the highest on record and double the share from 2016.

• Capex intensity has surged since mid-2023, tracking the rapid expansion of AI data centers, cloud infrastructure, and chip capacity.

• For real-estate investors, it signals continued demand for land, power, and logistics capacity tied to data infrastructure.

My take: Hyperscalers are pouring record amounts back into physical infrastructure to keep up with AI demand. The scale of spending suggests this buildout phase still has a long way to run.

$11.2T in home equity unlocked as rates fall, refi window reopens link

• Homeowners now hold $11.2 trillion in tappable equity, averaging $204,000 per borrower, as conforming 30-year rates fell to 6.17% in late October, the lowest in a year.

• The number of borrowers who could save at least 75 bps through refinancing jumped to 1.7 million with strong credit and 4.1 million overall, the highest since early 2022.

• HELOC rates have eased from nearly 10% in early 2024 to the low-7% range, cutting the monthly cost to withdraw $50,000 in equity by more than $100 from peak levels.

My take: The equity and refi window is finally reopening after two stagnant years. Lenders that move fast to engage these 4 million-plus borrowers stand to capture meaningful near-term volume.

VA loans help veterans buy homes up to 10 years sooner link

• Nearly three in four first-time VA buyers (74%) made a 0% down payment in 2024, compared with 12% for conventional loans, removing a key affordability barrier for eligible veterans.

• The time-to-purchase gap is striking: VA buyers reached homeownership up to 10 years sooner in Los Angeles, 7.5 years in San Diego and Oxnard, and roughly 3 years sooner in midwestern metros like Akron and Dayton (compared to buyers using conventional loans).

• On a $430,000 home, a VA borrower can buy with no down payment, while a conventional buyer must bring $51,600 in cash-showing how VA loans help more veterans enter the market despite high prices.

My take: VA loans are clearly driving faster ownership timelines, especially in high-cost metros. The numbers suggest stronger uptake potential if awareness improves among eligible buyers.

Flippers tighten margins as costs hit $80K and sales slip 3.7% link

• The Fix and Flip Market Index fell to 56 in Q3 2025, down from 62 a year ago, signaling slowing sentiment amid weak resale demand and rising renovation costs.

• Average renovation costs climbed to a record $80,000, now 16% of the average sale price, while 21% of homes sold below their expected after-repair value.

• Flippers are paying less upfront, with buy thresholds dropping to 64% of ARV, the lowest since mid-2023, as confidence in short-term appreciation softens across key markets like Texas, Florida, and the Northwest.

My take: Flippers are no longer chasing volume, they’re protecting margins. Rising holding costs and tighter lending are forcing investors to underwrite with discipline, not optimism.

Office leasing rebounds, but average deal size shrinks 20% link

• U.S. office leasing is back to roughly 100 million square feet this quarter, but CoStar data shows the average lease footprint is down 15 to 20% from pre-2020 levels, as big tenants renew smaller and stay put.

• With new high-end office supply at historic lows and very little coming in the next 2 to 3 years, smaller tenants are filling the gap, pushing the market toward more, but smaller, transactions.

• Large occupiers that once took 100,000 square feet are now closer to 75,000 to 80,000 square feet, reflecting permanent shifts to flexible workplace strategies and less need to pre-lease growth space.

My take: Leasing volume is recovering on paper, but the composition has changed. Landlords should plan for more fragmented demand and slower absorption of large blocks.

Greenwich home prices jump 10%, bidding wars return as NYC buyers rush in link

• Median home price in Greenwich hit $2.98 million in October, up 10.2% year-over-year, as listings fell short of surging demand from New York City relocators.

• Homes are selling twice as fast, with median days on market dropping from 46 in September to 22 in October, while bidding wars are common in the $2–$4 million range.

• Some properties are drawing extreme competition, one reportedly received 90 offers in a weekend while cash offers and waived contingencies have become standard tactics.

Tool of the day: Street AI

Automates listing descriptions, photo edits, and client replies for real estate agents.

Digital Realty Emerges as AI’s Real Estate Backbone link

The Motley Fool’s Reuben Gregg Brewer reports that Digital Realty (DLR), with over 300 data centers worldwide, is becoming a key infrastructure play in the AI boom. While chipmakers like Nvidia face valuation risks, the REIT’s portfolio provides the physical backbone for AI computing demand.

AI Startup Stand Raises $35B to Tackle Insurance Gaps in High-Risk States link

Realtor.com’s Snejana Farberov reports that Stand Insurance raised $35 billion to expand AI-driven home coverage in Florida and California, where traditional carriers are retreating amid wildfire and hurricane risks. Using physics-based AI and digital twins, Stand models each property’s unique exposure and tailors resilience plans, offering coverage to homes once deemed uninsurable.

Propy Makes First Move in $100M AI Roll-Up With Alabama Acquisition link

PR Newswire reports that Propy has acquired Delta South Title, a firm with 40% market share in Mobile County, marking the first deal in its $100M AI-led expansion. The platform will deploy AI escrow officers, smart contracts, and automation tools to cut manual workloads by up to 70% and double profitability. Propy plans to replicate this model nationwide to modernize the $49B title and escrow market.

AI Marketing Delivers Record $2.25M Hamilton Sale link

Elite Agent reports that Megan and Andrew Jones used AI-driven buyer targeting to sell a Hamilton sub-penthouse for $2.25 million, a complex record achieved in just 17 days, far exceeding the suburb’s median unit price of $1.26 million.

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An extraordinary Castle Residence

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