Starbucks tests the future of building

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Top multifamily markets among top 10 for single-family permitting link

• Six of the top 10 multifamily permitting markets are also top single-family permitting markets, showing strong housing demand across segments. These include cities like Houston, Dallas, Atlanta, Charlotte, and Phoenix.

• New York and Columbus were the only top multifamily markets to increase both multifamily and single-family permits year-over-year. Miami and Columbus also permitted more multifamily than single-family units in the past year.

• Markets like Fort Worth, Omaha, Milwaukee, Anaheim, Des Moines, and Chicago saw large year-over-year gains in multifamily permitting. Meanwhile, Los Angeles, Denver, Minneapolis-St. Paul, Nashville, and Salt Lake City saw steep declines of over 2,000 units.

Industrial vacancy rate rises to highest level since 2015 as supply boom slows link

• The national industrial vacancy rate reached 7.1% in Q1 2025, the highest since 2015, but the pace of increase is slowing. The West saw the sharpest year-over-year rise at 158 basis points, while Charleston hit 21%—the highest vacancy rate in the country.

• New industrial supply dropped to 65 million square feet in Q1, down from 162 million at its 2023 peak. Absorption remained positive, led by Dallas/Ft. Worth (6.9M sq. ft), Inland Empire (4.8M), and Phoenix (4.1M).

• Construction starts fell across all regions, with active projects now at their lowest since 2018. Rents grew 6% over the past year to an average of $10.65 per sq. ft. and are expected to level off as vacancy peaks.

Retail shows resilience but faces mounting risks in 2025

• The retail sector’s distress rate dropped by 210 basis points from February to March, with high demand leading to waiting lists for space in shopping centers. Still, low consumer confidence and store closures suggest underlying vulnerabilities.

• CMBS-backed loan delinquencies are rising, driven by retailer bankruptcies like Big Lots, which is reducing its footprint from 1,400 to as few as 200 stores. Target, Dillard’s, and Costco all have double-digit non-performing CMBS debt balances, with Target at 16.88%.

• E-commerce is surging, with non-store retail sales up 8.1% year-over-year in 2024, outpacing the 2.8% growth in total retail sales. Costco, Walmart, and Amazon now account for 17% of all retail sales and 57% of retail sales growth.

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Nearly 60,000 veterans at risk of foreclosure following VASP shutdown link

• The end of the Veteran Affairs Servicing Purchase (VASP) program has left nearly 58,000 veterans vulnerable to foreclosure. Over 75,000 had missed three or more mortgage payments as of April 1, and only 17,000 had secured assistance through VASP.

• Unlike FHA, USDA, or GSE loan holders, VA borrowers now have no partial claim fallback to avoid foreclosure. This puts them at a significant disadvantage despite having federally-backed mortgages.

• Veterans in cities nationwide are impacted, with advocates calling for urgent congressional action. The National Consumer Law Center is pushing to reinstate VASP until a replacement plan is passed.

Starbucks tests the future of cafe building with 3D-printed store link

• Starbucks opened a 1,400 sq. ft. 3D-printed store in Brownsville, Texas, with a build cost of $1.2 million. Traditional restaurant construction can range from $749,000 to $2 million, showing clear cost competitiveness as 3D printing scales.

• Construction material costs have risen 19% since 2020, making cost-saving tech like 3D printing more appealing. The method is also faster, cutting labor costs and build time significantly.

• Lennar’s 3D-printed housing in Georgetown, Texas showed decreasing costs with each build. In Japan, a train station was printed in just six hours, showing global momentum for the tech.

Charts that show why Florida’s housing markets are struggling link

• Inventory is rising fast in Florida cities like Tampa (+68%), Orlando (+66%), Jacksonville (+49%), and Miami (+46%). This surge is giving buyers more leverage, but it hasn’t translated to more closed deals.

• Pending home sales remain weak across the state, with Jacksonville down 8.3% and Miami off 3.9% year over year. Sales volatility has been high since late 2023, making market stability a concern.

• Home prices are falling even in hotspots like Miami, where every week in April showed negative price growth. Florida also dominates the list of metros where homes sell for less than list price, alongside cities in Texas.

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