Senior Living Frenzy

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Banks’ Grip on Finance Shrinks as Their Numbers Keep Falling link

• The number of FDIC-insured banks in the U.S. has been shrinking steadily for the past 40 years, leaving far fewer institutions than in the early 1980s.

• Consolidation and regulation are major drivers, with smaller community banks disappearing fastest while large institutions keep gaining share.

• Fewer banks mean less competition in lending, which could shift more capital flow into private credit, fintech, and nonbank lenders.

Coworking locations shrink for first time since COVID link

• U.S. coworking sites fell to 7,742 in Q2 from 7,840 in Q1, the first nationwide decline since the pandemic, while expansion slowed from 3% to just 0.3%. Operators are consolidating, with smaller firms exiting and larger players focusing on core markets.

• Manhattan’s coworking footprint shrank 4% and its location count dropped 5%, but average space size rose, showing a pivot toward fewer, larger premium venues. Meanwhile, Brooklyn grew 5% as demand shifted to neighborhoods blending residential life with flexible offices.

• Emerging markets like Long Island, Birmingham, and West Palm Beach posted big gains, while the national average coworking site size rose 2% to 18,245 sq. ft. Membership prices stayed high in top markets—$339/month in Manhattan and $330 in Brooklyn.

Mega Leases Plunge—E-Commerce Pullback Reshapes Industrial Market link

• Mega industrial leases (1M+ sq. ft.) fell by more than half in early 2025, with just 13 deals totaling 15.6M sq. ft. compared to 31 leases totaling 34.5M sq. ft. a year ago. Average lease size also dropped from 814,000 sq. ft. to 718,000 sq. ft.

• Third-party logistics providers surged, taking 38 of the top 100 leases totaling 28.9M sq. ft.—up sharply from 20.6M sq. ft. last year. Retailers and wholesalers slipped to second place, while e-commerce-only tenants collapsed to just 7 leases totaling 4.7M sq. ft.

• Inland Empire led with 9.8M sq. ft. leased, followed by Pennsylvania’s I-78/I-81 corridor at 6.3M sq. ft. and Dallas/Ft. Worth at 5.8M sq. ft. CBRE expects muted leasing through 2025 but a possible rebound in 2026 if rates ease and supply tightens.

Senior Living Frenzy: $5.8B in Deals as Investors Pile Into Aging Boom link

• Senior housing sales hit $5.8 billion in 1H 2025, up 71% year-over-year, with 513 properties and 30,600 units changing hands. Portfolio deals surged 200%, now making up most of the volume.

• Rents in Class A senior housing rose 6.5%–8.5% annually, nearly double historic growth, with investors expecting another 5%–7% in the coming year. Cap rates for assisted and independent living compressed to 7%, the lowest in years.

• REITs drove 43% of acquisitions, while private equity matched their pace, intensifying bidding wars. Top metro markets for sales included Dallas, New York, Miami, and Seattle, while new construction slowed 13.8%, tightening supply.

New Construction Trends link

• The price gap between new and existing homes hit a record low of just 7.8% in Q2 2025, with new builds averaging $218.66 per square foot versus $226.56 for existing homes. Median new-home prices stayed flat at $450,797, while existing homes rose 2.4% to $418,300.

• Builders are cutting prices in pandemic boomtowns: new construction list prices dropped 15.6% in Little Rock, 8.5% in Austin, and nearly 8% in Jacksonville and Wichita. These drops are reshaping affordability in markets that were once overheated.

• The South accounts for over 50% of both new and existing home listings, making it the only region where new builds outpace existing supply. Meanwhile, the Northeast faces the sharpest shortage, with new homes often priced 50% higher than existing stock.

Home values rose in 25 major metros link

• Home values rose in 25 major metros, led by Cleveland (+4.7%), Hartford (+4.5%), and Detroit (+3.8%), while 25 others fell, with the steepest drops in Tampa (-6.2%) and Austin (-6%). This marks a sharp regional divide between Midwest/Northeast growth and South/West declines.

• Sellers cut prices on 27.4% of listings in July, the highest rate since Zillow began tracking in 2018. Homes are sitting longer too, with the median listing age hitting 60 days, the slowest July on record.

• Builders are reshaping affordability: markets with steepest price drops, like Dallas and Tampa, also rank among the top 10 for new building permits since 2020. Inventory is rising there, easing pressure compared to land-constrained metros.

California CRE Reset: Rare Window for Big Returns Despite High Rates link

• Multifamily values in California have dropped from 2021 highs, with rents flat or negative the past two years, creating opportunities to buy at a lower basis while employment and occupancy stabilize. Some markets are already showing modest rent growth and stronger lease trade-outs.

• Debt markets are flush again, with banks, agencies, and debt funds offering competitive loans. New construction is limited, meaning a supply shortage could push returns higher for sponsors who buy now.

• Risks remain: operating costs have spiked—insurance is up 3–4x since 2020, trash fees have tripled, and minimum wage hikes are pressuring margins—while unpredictable rent control and tenant protection laws add investor uncertainty.

Tool of the day - DomusAI

DomusAI is an innovative, AI-powered platform designed to streamline architectural and interior design processes by delivering advanced, creative solutions for professionals.

The Future of AI in Real Estate and Rentals Is Already Here – link

From AI leasing chatbots to predictive pricing and maintenance, landlords and renters alike are seeing how fast the technology is reshaping the rental experience.

Digital Bullet Agency Bets on AI SEO to Disrupt Real Estate Marketing – link

The firm is rolling out AI-driven SEO services tailored for real estate pros — helping agents and brokerages dominate search rankings and capture more leads.

AI-Powered Websites Are Changing How Buyers Search and Connect – link

From personalized property matches to instant chat support, AI-driven real estate websites are redefining how clients discover and interact with listings.

Inside RealSmart: The AI Platform Blending Home Design, Smart Tech, and Agent Tools – link

The new RealSmart system combines AI-driven home design, smart home features, and agent productivity tools — creating an all-in-one ecosystem for real estate pros.

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2Q25 U.S. Industrial Market Conditions & Trends

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Vidit

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