Hello Brick Brief readers, 

Thank you for your continued support! Today we’re seeing the White House push Big Tech to fund grid upgrades, fundraising across multifamily and industrial outdoor storage, and new bipartisan legislation aimed at accelerating housing supply.

⚡ White House Seeks AI Data Center Compact
The White House is seeking an AI data center compact that would require Big Tech firms to cover new grid infrastructure costs and limit the impact on household electricity prices. The proposal comes as backlash from local communities over power and water use is slowing data center approvals across U.S. markets.

💰 Fundraising Targets Multifamily And Industrial
In recent fundraising news, Covenant Capital raised $1.1B for a value add multifamily fund targeting Sun Belt apartment renovations. Catalyst Investment Partners closed an oversubscribed $400M third industrial outdoor storage fund, while CenterSquare and Esas launched a $50M JV to acquire small bay industrial properties under 10K SF leased to essential service tenants.

🏠 Housing Supply Bills Gain Momentum Over Investor Bans
Trump’s institutional investor homebuying ban is facing resistance in Congress as lawmakers prioritize supply-side housing legislation instead. The House passed the Housing for the 21st Century Act 390-9 to speed zoning reform, permitting, and regulatory approvals as it tries to close a 5.5M unit housing deficit.

Consumers see inflation cooling and job fears easing in January - New York Fed survey shows 1-year inflation expectations fell to 3.1% from 3.4%, while perceived chances of finding a new job within three months improved to 46% (Bloomberg)

Fed Governor Miran says tariffs have hit foreign exporters more than US consumers - He argued the economic impact has stayed muted, despite research like Yale Budget Lab estimating tariffs cost the median household about $1,400 per year (Reuters)

$875B property debt comes due in 2026 as refinancing markets reopen - Commercial and multifamily maturities are down 9% from 2025 while loan originations are projected to jump 27% to $805B as lenders return to the market (Bloomberg)

CRE loan closings rise 67% YoY in Q4 2025 as alternative lenders gain share - CBRE’s Lending Momentum Index hit 1.2, with debt funds and mortgage REITs driving 40% of non-agency volume as banks and life companies pull back (ConnectCRE)

House passes Housing for the 21st Century Act 390–9 to accelerate new supply - Bipartisan bill targets zoning reform, faster permitting, and fewer regulatory delays as Congress tries to close a 5.5M-unit housing deficit (Bisnow)

The bill aims to boost housing supply by cutting federal environmental review delays, encouraging zoning modernization, expanding manufactured housing rules, and supporting community banks in financing new residential development.

Unfortunately, the bill mostly encourages zoning reform rather than requiring localities to change restrictive rules, which may limit how much new housing supply it can realistically unlock in zoning-constrained markets.

Trump’s Wall Street investor homebuying ban runs into GOP resistance - Lawmakers push supply-side housing bills instead, warning the White House has not defined “large investor” and that a ban could derail bipartisan housing legislation (WSJ)

Office REIT Joss Realty launches IPO to target value-add office opportunities - New York-based owner holds a 308K SF three-building portfolio that is 72% leased across Boston, Philadelphia, and the Bay Area (Bisnow)

Turner & Townsend leases 24K SF at SL Green’s 100 Park Avenue in Midtown Manhattan - U.K.-based firm signed a 12-year deal, relocating from 285 Madison Avenue; asking rents were about $75 per SF (CommercialObserver)

US industrial investment sales hit $104B in Q4 2025, up 12% YoY - Newmark reports 62M SF of net absorption, as 1B SF of lease expirations and data center land demand tighten supply through 2027 (CommercialObserver)

Housing-linked distributors still weigh on logistics demand - Elevated inventory-to-sales ratios are keeping warehouse needs softer; Home Depot is marketing 1.3M SF of sublease space at a newly built New Jersey distribution center (CoStar)

US container imports fall 6.8% in January as tariff frontloading fades - Ports handled 2.32M TEUs, still above historical averages, while China volumes dropped 22.7%; forecasters expect further declines in early 2026 (Reuters)

Mall traffic rebounds to start 2026 across every format – January visits rose 6.2% YoY at open-air centers, 4.5% at indoor malls, and 3.6% at outlets as shoppers returned to discretionary retail (Placerai)

Returns drove quick trips, but engagement improved too – Short visits jumped double digits, while longer stays also grew, signaling more browsing and spending beyond post-holiday exchanges (Placerai)

White House seeks AI data center compact to protect power and water systems - Draft agreement would require tech firms to cover new grid infrastructure costs and limit impacts on household electricity prices (Reuters)

Affordability, such as housing costs and the rising cost of electricity, have become a bipartisan issue. A few weeks ago Microsoft had already agreed to help fund major grid upgrades tied to its rapid buildout.

RBC BlueBay warns AI debt wave requires $300B of new demand to avoid credit selloff - Firm expects record $1T of high-grade issuance, and says spreads could widen 20–30 bps if investors do not absorb the surge in tech borrowing (Bloomberg)

Grassroots opposition is reshaping data center development math - Local backlash over power and water use is slowing approvals, with projects like a proposed $15B OpenAI-Oracle campus sparking political pushback in small communities (CommercialObserver)

AI firms warn Illinois privacy law could drive data center investment to Indiana and Wisconsin - Industry groups say BIPA allows broad private lawsuits over biometric data use, creating major liability for AI-driven facilities that rely on facial and fingerprint data (TheRealDeal)

Q4 2025 hotel occupancy fell 1.2% YoY and RevPAR dropped 1.1% as demand softened – ADR rose 1%, but supply growth continued to weigh on performance (CBRE)

Cambridge ARPA-H bioscience innovation hub faces shutdown after distributing $330M - Trump administration moved to terminate the federal agreement, raising concerns about disrupting Massachusetts life sciences funding and research programs (Bisnow)

Alphabet raises $20B record bond sale to fund AI capex surge - Investors piled in with $100B of demand as Google finances massive AI infrastructure and data center expansion (Bloomberg)

Nashville-based Covenant Capital raises $1.1B value-add multifamily fund - Firm targets Sun Belt apartment renovations; Covenant has already deployed $300M from the new fund across 54 deals (Bisnow)

Catalyst Investment Partners closes oversubscribed $400M third IOS fund – Investor demand exceeded the fund’s hard cap (PERE)

CenterSquare Investment Management and Esas Real Estate launch $50M JV to buy small-bay industrial properties under 10K SF across the U.S. – Essential Service Industrial strategy targets multi-tenant sites leased to local HVAC, plumbing, and other service businesses (CommercialObserver)

CMBS distress rate could reach 15% by year-end as refinancing headwinds persist - CRED iQ shows distress has risen to 11.98% in January 2026 from 4.83% in mid-2022, driven by higher rates and ongoing pressure in office and retail (CommercialObserver)

NYC rent-stabilized housing distress deepens as rent growth lags rising costs, shrinking NOI and pushing more buildings toward financial strain – HSTPA limits on MCI and IAI upgrades have reduced reinvestment, leaving up to 80,000 units vacant (CommercialObserver)

Eddie Bauer files Chapter 11, plans to sell up to 175 stores - Retailer lists $1.7B of debt as Authentic moves the brand’s licensing and e-commerce business outside the bankruptcy (Bloomberg)

Bondholders sue American Dream megamall in East Rutherford, New Jersey after valuation cut to $1.65B - Lawsuit claims lower assessments threaten $800M of PILOT-backed municipal bonds, as payments now cover less than half of annual interest owed (Bisnow)

Nate Paul’s Downtown Austin sites near 99 Trinity and Colorado Street face potential $172M sale - Court-appointed receiver is negotiating deals that could nearly double the properties’ $89M appraised value, clearing the way for new high-density development (CommercialObserver)

Multifamily REITs AvalonBay and Equity Residential back proptech AI firm Cadastral in $9.5M round - New York startup is building an “AI analyst” for lease, underwriting, and diligence workflows and has already signed 40+ CRE customers (Bisnow)