Hello Brick Brief readers, 

Thank you for your continued support! Today we’re seeing local communities push back against data center development, smaller public REITs turn to liquidation to unlock shareholder value, and AI expand deeper into real estate workflows.

🏭 Data Center Pushback Is Intensifying
Data center developers are facing growing local resistance as communities challenge projects with limited perceived benefits; Naperville, IL recently rejected a 145,000 SF data center in a 6–1 vote after resident opposition tied to proximity to housing and operational impacts. In response to similar scrutiny in New Mexico, Oracle doubled its job forecast to ~1,500 permanent roles at its data center serving OpenAI.

🏢 Smaller Public REITs Seek Value Unlocks
$135M-listed office REIT Orion Properties is exploring strategic options after pressure from Kawa Capital, a continuation of a broader trend of smaller public REITs pursuing take-privates or liquidations to unlock capital amid persistent public-market discounts. Elme Communities, which is in the process of a full liquidation, is making meaningful progress in its portfolio wind-down and recently agreed to sell three multifamily properties across GA and MD for $155M.

🤖 Tech Investment Targets Real Estate Operations
Real estate startup Orbital raised $60M in Series B funding to expand into the U.S. and scale its platform across legal workflows tied to property transactions. On the lending side, NEXA Lending launched an agentic AI platform offering real-time pricing, investor guideline searches across ~288 lenders, and automated marketing tools for loan officers.

US long-term unemployment hits four-year high – Jobseekers now take over 11 weeks to find work, as slower hiring raises concerns that cooling labor conditions could weigh on consumer spending (FT)

Trump threatens to raise tariffs on South Korean goods to 25% from 15% – The move targets autos, lumber, and pharmaceuticals after Trump said South Korea failed to codify last year’s trade deal (Bloomberg)

Risk of a partial US government shutdown rises this weekend – Senate Democrats are blocking the funding package over Homeland Security provisions (WSJ)

Dollar sinks to four-month low as gold tops $5,000 and yen surges – Speculation over joint US-Japan currency intervention, and rising US political risk, pushed investors out of the dollar and into haven assets (FT)

US core capital goods orders rise for fifth straight month – Orders rose 0.7% in November, pointing to resilient business investment and continued economic momentum late in 2025 (Reuters)

Gen Z homeownership reached 27.1% in 2025, up 1.0 pt YoY – Millennial ownership edged up to 55.4%, but high prices and income gaps continue to cap affordability gains (Redfin)

U.S. home-purchase cancellations hit a record 16.3% in December 2025 – About 40,000 deals fell through as buyers gained leverage from rising inventory and walked away over pricing and inspection issues (Redfin)

Buyer-friendly housing conditions re-emerge in 2026 as Indianapolis ranks No. 1 among the 50 largest U.S. metros – Atlanta, Charlotte, Jacksonville, and Oklahoma City follow as softer price momentum and lower competition improve buyer leverage (Zillow)

Seattle’s office market posted its first positive net absorption quarter since 2021 in Q4 2025 – Vacancy growth is leveling off, with leasing gains concentrated in AI-driven demand and high-quality buildings, pointing to a gradual 2026 recovery (ConnectCRE)

Law firm Withers signs 33K SF lease at Tishman Speyer’s 30 Rockefeller Plaza in New York City, NY – The firm moves its New York headquarters from 430 Park Avenue under a 15-year lease (TheRealDeal)

Brinker International led Q4 2025 FSR traffic on Chili’s value strategy – Bundles and drink specials kept visits above 2024 levels despite a softer consumer backdrop (Placerai)

Dine Brands Global stabilized per-store traffic through fleet cuts while Texas Roadhouse grew visits via expansion – Dine Brands lifted average visits per venue; Texas Roadhouse increased total visits by 2.1% YoY (Placerai)

Nvidia invests $2B in CoreWeave to expand AI data center capacity – The investment makes Nvidia the neocloud’s second-largest shareholder and supports plans to build more than 5 GW of US AI infrastructure by 2030 (Reuters)

An example of a circular financing deal that has recently drawn concern amid growing fears of an AI bubble.

Despite AI boom, California’s data center future remains uncertain – Power delays, high costs, and regulatory hurdles are pushing hyperscale development to other states, even as tenant demand in Silicon Valley stays strong (Bisnow)

Oilfield contractor Baker Hughes doubles data center equipment order target to $3B – Surging AI-driven power demand is pushing the company to expand gas turbine capacity and pivot further toward data centers and LNG (Bloomberg)

Naperville, IL rejects a proposed 145,000 SF data center near I-88 in a 6–1 city council vote – The decision followed resident opposition over proximity to housing, operational impacts, and demands for further study before approval (ConnectCRE)

Oracle doubles job forecast to ~1,500 permanent roles at its New Mexico data center for OpenAI – The project will run on on-site gas generation with recycled cooling water as Oracle responds to local concerns over power, water use, and limited economic benefits (Bloomberg)

Data center developers have recently faced growing pushback to new projects as communities cite limited benefits for surrounding communities alongside concerns over water consumption, noise, and aesthetics. 

US hotel industry RevPAR slipped 0.3% in 2025 despite economic growth – The decline was driven by a 1.2% drop in occupancy, an unusual outcome outside a recession, even as new supply rose just 0.7% (CoStar)

Drugmakers turn to AI to speed trials and regulatory filings – Companies are using AI to cut weeks off trial site selection and document preparation, even as drug discovery breakthroughs remain elusive (Reuters)

SoftBank Group halts talks on a ~$50B acquisition of US data center operator Switch, stalling its Stargate data center push – SoftBank is now exploring a minority investment or partnership rather than full control (Bloomberg)

SoftBank recently agreed to acquire data center operator DigitalBridge for ~$4B, including debt. 

$135M-listed Office REIT Orion explores strategic options after investor pressure – The company agreed to cooperate with Kawa Capital, its ~10% shareholder, after rejecting a $141M take-private bid last year (Bisnow)

Orion Properties owns a portfolio of primarily suburban, noncore office assets concentrated in secondary and tertiary markets, including office parks and outlying metro areas such as East Syracuse, NY, with limited exposure to major CBDs.

This news follows a broader pattern of smaller, subscale REITs (Elme, Aimco, Plymouth, Braemar) opting to liquidate or pursue take-private transactions to unlock value for shareholders amid persistent public-market discounts. 

Elme Communities sells three multifamily properties across GA and MD for $155M – The company lowered expected liquidation proceeds as softer DC-area valuations weigh on remaining asset sales (Bisnow)

Multifamily REIT Elme Communities has been pursuing a full liquidation and portfolio wind-down due to structural disadvantages tied to its scale, such as a higher cost of capital.

Real estate law platform Orbital raises $60M Series B led by Brighton Park Capital – The London-based company plans to use the funding to expand into the U.S. and scale its technology across real estate legal workflows (CommercialObserver)

Mortgage lender NEXA Lending launches new AI tools for loan officers – The Agenetic AI platform adds real-time pricing, investor guideline searches across ~288 lenders, and automated marketing support to streamline origination workflows (HousingWire)