Hello Brick Brief readers, 

Happy Friday. Today we’re seeing housing demand weakening, mortgage rates continuing to surge, institutional JVs in industrial and retail, a new AI-driven manufacturing fund from Jeff Bezos, and Palantir launching an AI mortgage platform.

🏠 Housing Demand Weakens
January new home sales fell 17.6% month over month to 587K annualized, their lowest level since 2022, as affordability pressures overwhelmed builder incentives and severe winter weather further limited buyer traffic. Homes took 66 days to sell in February, their slowest pace in ~10 years, as buyers stay on the sidelines and wait for rate relief or further price declines. Unfortunately, that relief may not be coming, as 30-year mortgage rates have risen another 7 bps to 6.43% on inflation fears, threatening spring homebuying momentum.

🏗️ Institutional Capital Targets Industrial And Retail
GIC and Prologis formed a $1.6B U.S. logistics development JV targeting build-to-suit industrial projects as demand from e-commerce and reshoring drives new supply. On the retail side, Apollo committed $1B for a 49% stake in Realty Income’s retail JV focused on essential net lease assets such as dollar stores, quick-service restaurants, grocery, and drugstores.

Other key news today includes:

Conference Board cuts 2026 U.S. growth forecast to 2.0% as outlook weakens – Leading Economic Index falls to 97.5 with declines in consumer expectations and building permits (WSJ)

Jobless claims fall to 205K signaling stable labor market – Continued low layoffs support steady employment despite elevated rates and rising cost pressures (Reuters)

Non-traded REITs raise $593M in January, up from December – Capital rotation out of private credit may redirect flows into real estate as investors seek stability (CNBC)

Federal regulators propose Basel III capital reforms tied to mortgage lending rules – Changes lower Tier 1 requirements by 4.8% to 7.8%, easing capital pressure on banks and supporting increased mortgage lending (HousingWire)

Los Angeles to track corporate ownership of rental housing – Study will assess impact of institutional landlords on tenants, homebuyers, and small property owners (Bisnow)

NYC launches ADU program offering up to $395K per homeowner – Strong demand seen with 1,300+ applications in two-week pilot as city looks to boost housing supply (Homes.com)

New-home sales drop 17.6% MoM to 587K annualized in January, lowest since 2022 – Median price fell 6.8% YoY to $400.5K as affordability pressures and weak demand persist despite builder incentives (Bloomberg)

The drop is driven by affordability constraints overwhelming builder incentives, while severe winter weather further limited buyer traffic as elevated mortgage rates and $400K price points keep buyers priced out. Buyers are staying on the sidelines and waiting for clearer rate relief or further price declines before committing.

Rent growth slows to 1.9% YoY in February – Concessions rise to ~40% of listings as new supply and accidental landlords increase competition (Zillow)

Homes take 66 days to sell in February, slowest pace in ~10 years – Sellers outnumber buyers by over 40%, driving increased negotiating power and discounts (Redfin)

Adjustable-rate mortgage borrowers save ~$150 per month in March, largest discount since 2022 – Lower 5.51% ARM rates vs 6.19% fixed rates reduce monthly payments and improve affordability (Redfin)

Fannie Mae and Freddie Mac stocks drop ~30% in 5 days amid privatization uncertainty – Lack of clear government plan raises concerns over mortgage rates and housing market stability (Bisnow)

30-year mortgage rate rises to 6.22% hitting three-month high as bond yields climb – Inflation fears from Iran conflict threaten spring homebuying momentum (Bloomberg)

Security Properties plans to outsource management of 22,000-unit multifamily portfolio – Firm shifts to third-party operators to focus on acquisitions, affordable housing, and investment management (Bisnow)

Office recovery shows strongest YoY gains in lagging high-income metros – Coastal markets may see leasing pick up in top-tier assets despite still trailing pre-pandemic levels (Placerai)

Office leasing shifts toward move-in-ready suites – Pre-built spec spaces lease faster as tenants prioritize flexibility and shorter move-in timelines (CoStar)

NYC office leasing hits strongest year since 2014 as AI demand surges – AI firms expanded by ~1M SF in 2025, driving recovery across Manhattan office market (Bloomberg)

Bank of Hope leases 50K SF at Carolwood’s Aon Center at 707 Wilshire Boulevard in Los Angeles, CA – Bank relocates headquarters from Koreatown to Downtown Los Angeles (TheRealDeal)

TSMC’s $165B investment transforms Phoenix, AZ into semiconductor hub – Project is driving industrial development and accelerating housing and retail demand as jobs and suppliers move in (Bisnow)

Retail outlook remains stable with 55% confident in brick-and-mortar performance – Store visits continue modest growth as physical retail proves resilient alongside e-commerce (Placerai)

Shopping center visits rise across most states in 2025 – Convenience and strip retail outperform while malls and destination formats lag (Placerai)

E-commerce expected to outpace stores with ~70% of leaders forecasting faster growth – Retailers increasingly integrate online and in-store channels rather than treating them as competitors (Placerai)

Wholesale clubs lead retail outlook with 97% expecting growth or stability – Value-focused formats outperform as consumers prioritize bulk buying and essentials (Placerai)

Family Dollar tests small-format stores to expand in urban markets – Retailer targets dense cities with micro-store concept to navigate high rents and limited space (CoStar)

US, Japan announce $40B nuclear reactor project across Tennessee and Alabama – Investment aims to expand power supply for AI and industrial growth, supporting data center demand (Bloomberg)

Stream Data Centers plans 2.2M SF data center development in Genesee County, NY valued at $19.4B – Project faces community opposition and infrastructure constraints tied to 500 MW power demand (TheRealDeal)

Virginia lawmakers debate ending data center tax breaks – Potential removal of incentives could slow development in largest U.S. data center market and shift investment to other states (Bisnow)

U.S. hotel transaction activity expected to rebound in 2026 – Improving debt conditions and maturing loans are forcing owners to sell and recycle capital (CoStar)

Janus Living raises $840M in upsized IPO for senior housing platform – REIT operates 34 communities across 10 states with heavy exposure to Florida and Texas (Reuters)

FedEx raises full-year outlook as delivery network overhaul gains traction – Integrated air and ground operations boost efficiency and support steady demand despite macro volatility (Bloomberg)

Bezos seeks $100B AI manufacturing fund to automate industrial companies – Push to modernize physical production could drive demand for advanced industrial facilities across chips, defense, and aerospace (WSJ)

The fund aims to make factories and industrial production more efficient by applying AI across operations. It will acquire manufacturing companies across sectors like semiconductors, defense, and aerospace and use AI to simulate and optimize how those businesses operate.

GIC and Prologis form $1.6B U.S. logistics development JV – Partnership targets build-to-suit industrial projects as demand from e-commerce and reshoring drives new supply (Bisnow)

Lone Star closes $1B+ residential mortgage fund targeting $10B in loans – Platform has acquired $20B of mortgages across 40,000 loans since 2014 (ConnectCRE)

Apollo commits $1B for 49% stake in Realty Income retail JV – Portfolio spans ~500 single-tenant net lease properties across essential retail; Deal structure caps Apollo’s annual returns at 6.875% (Reuters)

The portfolio will focus on single-tenant net lease properties across dollar stores, QSR, grocery, drugstores, and fitness in diversified U.S. markets.

Dynamic Star files bankruptcy for Fordham Landing mixed-use development in Bronx, NY tied to $73.9M in defaulted loans – Filing blocks foreclosure as partners battle for control of 5,000-unit project (TheRealDeal)

Palantir and Moder partner to launch AI mortgage operations platform with Freedom Mortgage as pilot – Platform automates underwriting and servicing workflows by translating lending rules into auditable AI-driven processes (HousingWire)

Palantir will sit on top of a lender’s existing systems and organize all mortgage data into one structured layer while turning complex guidelines into clear, usable rules, which can be automatically applied across the loan lifecycle. The platform will then use AI agents to execute those rules across workflows like servicing and compliance, reducing manual work and improving speed and accuracy.