The Brick Breakdown

Thank you for your continued support. In recent news, the Fed held rates steady at 4.25%- 4.5%, federal layoffs led to a surge in D.C. housing inventory, JLL beat Q1 earnings expectations thanks to strong leasing, and Wynn missed estimates and delayed $375M in capex due to tariffs.

📈 Market Sentiment Shifts
Despite the Fed holding rates steady, officials signaled concern over both inflation and rising unemployment, reflecting a fragile economic balancing act. At the same time, elevated consumer credit and soft home sentiment suggest households are straining under mixed signals and tightening budgets.

🏙️ Real Estate Realignment
Federal layoffs are driving a surge in D.C. housing inventory, highlighting how policy shifts are reshaping urban-suburban dynamics. Meanwhile, Class A+ office buildings and top-tier retail corridors continue to outperform, underscoring the flight to quality across asset classes.

💼 Earnings Reveal Sector Splits

JLL beat Q1 expectations with strong office and industrial leasing, signaling resilience in commercial real estate even amid trade-driven caution. Meanwhile, Wynn missed estimates and delayed $375M in U.S. capex, showing how material cost volatility is weighing heavily on luxury resort development.

This Week in Real Estate: Key Events & Data

Quick Markets

30Y Mortgage: 6.86% (-5 bps)
10Y Treasury Yield: 4.27% (-4 bps)
FTSE NAREIT Index: 766.01
30-day SOFR Average: 4.35%

Market Pulse

The Fed’s rate pause and rising consumer credit signal growing household strain and policy hesitation as tariff-driven uncertainty clouds the path forward for both inflation and employment

Fed holds rates at 4.25%–4.50% amid tariff-driven uncertainty -- Officials warn of rising inflation and unemployment risks, adopting a cautious “wait and see” stance (WSJ)

U.S. consumer credit rose 2.4% in March, exceeding expectations -- Revolving credit led Q1 growth at 2.3% as households took on more debt despite economic uncertainty (Fed)

Residential

Rising housing inventory, soft buyer sentiment, and surging childcare costs point to deepening affordability pressures that could stall residential activity despite easing rate conditions

Fannie Mae home sentiment index rises to 69.2 in April but remains subdued -- Seller confidence drops to post-2023 low as price cuts mount and economic fears weigh on buyers (Realtor.com)

Sending two kids to daycare now costs more than rent in 14 of 20 major U.S. metros -- Cities like Denver, Seattle, and Minneapolis see childcare costs equal or exceed 150% of typical rent, straining family budgets (Redfin)

D.C. housing inventory jumps 25% YoY to 3-year high -- Federal layoffs under Trump drive listings surge, with suburbs like Alexandria and Montgomery County leading gains (Redfin)

Office

Office recovery remains uneven as peak occupancy in NYC and D.C. contrasts with softness in markets like Dallas, highlighting ongoing flight to quality in Class A+ buildings

Office occupancy hits 53.6% weekly average across top 10 cities -- NYC and D.C. set new peak records while Dallas sees Tuesday drop, with Class A+ buildings reaching 94.1% peak occupancy (Kastle)

Market Mix

Retail and hotel sectors show strength as lifestyle-driven tenant shifts boost suburban rents, mall traffic rises on pre-tariff spending, and Caliber bets $400M on Hyatt Studios amid tight hospitality supply

Retail

High-street and LWP retail corridors lead rent performance in 2025 -- Urban cores see mixed results as dense suburban and mixed-use districts benefit from lifestyle demand and tenant shifts (CBRE)

Mall traffic rose across all formats in April 2025 -- Visits and average durations increased YoY as Easter timing and tariff fears drove consumer demand ahead of expected price hikes (Placer.ai)

Hospitality

Hotel developer Caliber inks $400M 15-property deal to develop Hyatt Studios hotels -- Plans to expand Hyatt Studios to AZ, CO, NV, TX, and LA amid tight hotel supply and rising demand (CoStar)

Earnings & Real Estate Impact

Wynn’s earnings miss and capex delay contrast with JLL’s strong leasing-driven beat, highlighting divergent sector responses to tariff-driven volatility and trade policy uncertainty

Wynn missed Q1 earnings expectations and delayed $375M in U.S. capex, citing tariff-driven material cost uncertainty. The hotel developer eclined to update full-year guidance amid volatile conditions (Bisnow)

JLL beat Q1 earnings expectations, driven by strong office and industrial leasing, while maintaining a cautious full-year outlook amid trade policy uncertainty (CoStar)

Financings

Refinancings

Rosewood Property Co. secures $125M loan from PGIM to refinance 19-property self-storage portfolio -- 1.2M SF portfolio spans 10,000 units across PA, MD, NJ, IN, and KY with 91% historical occupancy (REBusinessOnline)

North Palisade lands $55M refi for 3,300-unit SoCal self-storage facility -- Goldman Sachs provides loan for Huntington Park property, among region’s largest, as firm expands $500M portfolio (CommercialObserver)

M&A

Building & Portfolio M&A

RK Centers lists Miami Sears site for over $100M – The 8.1-acre parcel is approved for a 1,050-unit Live Local Act project with 50K sf of retail (TheRealDeal)

Tredway acquires 602-unit Ocean Park Apartments in NYC’s Queens for $88M -- Deal with Related includes new HPD agreement to preserve affordability and fund major rehab (CommercialObserver)

NHI acquires six-property memory care portfolio in Nebraska for $63.5M -- Agemark sells 205-unit CountryHouse portfolio but retains operations under 15-year master lease (REBusinessOnline)

Korda Group buys 228-unit Stonehenge apartments near Nashville for $51.4M -- Institutional Property Advisors sells Lebanon, TN complex to LA-based multifamily investor (CoStar)