Hello Brick Brief readers, 

Thank you for your continued support! Today we’re seeing mortgage rates move sharply higher and AI-driven data center demand spark major power deals and regulatory shifts.

🏠 Mortgage Rates Snap Higher

30Y mortgage rate surged 13 bps to 6.12%, while the 10Y Treasury yield rose 5 bps to 4.04% after US-Israel strikes on Iran heightened geopolitical risk and pushed oil prices higher; Jamie Dimon warned that a prolonged energy shock could keep inflation elevated. Mortgage rates moved significantly more than the 10Y due to materially wider MBS spreads, reduced investor demand for mortgage duration amid inflation concerns, and lender margin protection during heightened volatility.

⚡ Data Center Power Strain

AI-driven data center demand is straining US power grids, prompting BlackRock’s GIP and EQT to agree to acquire utility AES for $33.4B including debt, while California reconsiders its 50-year nuclear ban to support rising electricity needs. Meanwhile, Applied Digital is seeking a $2.15B junk bond to fund its 200MW North Dakota data center, which is leased to an investment-grade hyperscaler under a 15-year contract.

Dimon warns prolonged Iran conflict could reignite inflation risk for US economy – Says sustained oil spike could reverse recent 0.2% CPI cooling and complicate Fed policy outlook (Bloomberg)

US bank CRE lending grew 2.3% to $2.93T in 2025, nearly double the prior year pace – Multifamily led with 4.9% growth to $661.9B, even as nonaccruals rose 17% and foreclosure activity remained limited (CoStar)

Blackstone BREIT records first net inflows since 2022 as $55B non traded REIT sees withdrawal requests fall to four year low – Fund cites outperformance and exposure to data centers and logistics amid commercial real estate recovery (Bloomberg)

Mortgage rates jump to 6.12% as 10-year Treasury climbs above 4% after Iran strikes – 13 bps move reverses sub-6% momentum just as spring housing market begins (CNBC)

Mortgage rates moved higher even as the 10-year Treasury rose only modestly, as MBS spreads widened and lenders repriced risk amid oil-induced inflation fears, geopolitical uncertainty, and new-month bond positioning.

Trump urges prospective buyers to wait for lower mortgage rates as 30 year fixed falls to 5.98% lowest in over three years – Administration pushes $200B Fannie and Freddie MBS purchases to trim rates by up to 50 basis points (Bloomberg)

Single family construction costs rose 3.2% YoY in January, with labor intensive services up 4.7% versus 2.1% for materials – Higher labor costs are limiting lower priced home supply and slowing progress on housing affordability (Homes.com)

US apartment supply finally pulls back as new construction retreats in 2026 – Recovery from prior building surge to vary by market as pipeline normalizes (CoStar)

Apartment concession usage rose in January, led by the South at 20.5% and West at 16.2% – Austin, Denver and San Antonio offered discounts on roughly one third of stabilized units, with average cuts up to 14.8% (RealPage)

Chicago leads US metros with 606 corporate relocation and expansion projects in 2025 for 13th straight year – Texas tops states with 1,406 projects and over $75B in capital investment supporting 42,000 new jobs (CoStar)

Manhattan office leasing fell to 2.23M SF in February, down 39.5% from January and 29.7% YoY – Availability rate increased for first time in two years as demand dropped 19% below 10 year monthly average (CommercialObserver)

RXR signs Latham & Watkins to 131.4K SF expansion at 1285 Avenue of the Americas in Manhattan, NY – Law firm grows footprint to 251.4K SF at 39-story Midtown office tower seven months after initial 120K SF lease (CommercialObserver)

BXP signs Snowflake to 82.5K SF at 7 Times Square in Manhattan, NY – Data platform takes full floor at Times Square tower one block from its current 114 West 41st Street office (CommercialObserver)

Silverstein Properties signs Wilson Elser to 24.4K SF at U.S. Bank Tower in Los Angeles, CA – Law firm takes full 31st floor at 633 West Fifth Street and relocates from City National Plaza (CommercialObserver)

US manufacturing expanded in February, as ISM rose to 52.4 – Prices paid surged 11.5 points to 70.5, highest since 2022, signaling renewed cost pressures even before oil spike tied to Iran conflict (Bloomberg)

Industrial rents averaged $8.94 per square foot in January, up 5.1% YoY, while vacancies climbed to 9.6% after a 160 bps annual increase – Pipeline held steady at 355.7M SF as new lease spreads narrowed to $1.17 above in place rents (CommercialCafe)

Trade and tariff volatility clouds 2026 port outlook as proposed 100% crane tariffs and shifting canal dynamics add uncertainty – Industrial sales reached $4.1B in January, led by New Jersey at $372M and Los Angeles at $356M (CommercialCafe)

Kroger traffic rose 2.3% YoY in Q4 2025, with visits per venue up 2.8% across 20 plus banners – Shorter dwell times signal more frequent mission driven trips as grocers compete for share of list (Placerai)

California reconsiders 50-year nuclear ban as AI power demand strains clean energy targets – New bill would allow federally licensed next generation reactors amid broader US nuclear push (Bloomberg)

Nvidia to invest $4B in data center optics suppliers Lumentum and Coherent – $2B apiece multiyear deals secure indium phosphide laser supply and fund R&D to support AI data center buildout (Bloomberg)

Applied Digital seeks $2.15B junk bond sale to fund 200MW North Dakota data center – Lease with investment grade hyperscaler underpins 15 year revenue stream as AI driven high yield issuance accelerates (Bloomberg)

BlackRock’s GIP and EQT to acquire AES for $33.4B including debt in major AI driven power bet – Consortium targets utility with $27.6B net debt as surging data center demand accelerates grid investment and infrastructure M&A (Reuters)

ProperXPM acquires Novo Properties and Alexander Properties Group, expanding to nearly 20,000 units across 15 states – PE-backed consolidator continues property management roll up strategy amid operational pressures on multifamily operators (Bisnow)

Adam Neumann/Flow advances private school and mixed-use plans in El Portal, FL after acquiring 16-acre Little Farm site for $71.5M and church property for $13.7M – Proposed SOLFL campus and 2,380-unit Live Local project spark resident backlash over demolition, density and zoning changes (TheRealDeal)

WeWork founder Adam Neumann wants Flow to create branded, amenity-rich residential communities that integrate housing, education and lifestyle into one vertically controlled ecosystem.

Last year, Flow agreed to acquire a 60% stake in Chetrit Group’s River District project in Brickell for $106M (CoStar), which it plans to rebrand, lease up and expand into a 1,900-plus-unit mixed-use community anchored by a 54-story, 632-unit waterfront tower.

With its land assemblage in El Portal, Flow can advance a 2,380-unit Live Local mixed-use project alongside the proposed SOLFL private school and gain long-term influence over density and zoning in one of Miami-Dade’s last low-rise corridors.

Arbor Realty Trust reports 45% average occupancy on foreclosed multifamily assets, citing Texas ICE raids as drag on performance – REIT ended 2025 with $570M in delinquencies and $500M in REO as foreclosures surged from six to 21 YoY (Bisnow)

CMBS investors take $139M loss on $240M bond tied to 600 California Street office tower in San Francisco, CA – Loan sale left just $101M to distribute, wiping out more than half of bondholders’ original investment (Bloomberg)

Aurora Capital Associates and AVRS Partners enter contract to buy 69K SF Scribner Building at 597 Fifth Avenue in Manhattan, NY from lender after $151M CMBS default by Thor Equities – Landmark office and retail property expected to close in March (TheRealDeal)

Public Storage and Welltower form data science partnership to expand AI driven real estate investing – Collaboration combines Welltower capital allocation analytics with Public Storage operational and pricing data capabilities (IREI)