Hello Brick Brief readers, 

Thank you for your continued support! Today we saw a 25 bps rate cut, Norway’s sovereign wealth fund steer clear of private data center assets, and industrial markets build momentum heading into 2026.

🪙 Rate Cuts and Housing Pressure
The Fed delivered a third straight 25 bps rate cut; markets now expect only one more move in 2026 as dissenting votes and mixed labor and inflation data show a committee losing conviction. Fed Chair Powell believes that a 25 bps cut will not improve housing affordability, as the real constraint is a structural supply shortage created by years of underbuilding and a strong lock in effect that continues to keep resale inventory tight.

⚡ Power Demand and Data Center Strategy
Norway’s $2.1T wealth fund plans to lift real estate to 7% of its total portfolio by 2028 but plans to avoid private data center exposure as rapid tech shifts and heavy capex make long term underwriting risky. On the other hand, Apollo and Capital Power are targeting $3B in U.S. gas plant acquisitions to capitalize on AI driven data center energy demand. 

🏭 Industrial Momentum Into 2026
Colliers sees industrial fundamentals firming as the top 25 markets drive roughly two thirds of national supply, construction and demand and anchor the sector’s activity. Vacancy is expected to tighten in 2026 as the construction pipeline sits 62% below its 2022 peak while absorption is outpacing supply in seven major markets and nearing balance in several others.

Fed delivers a third straight quarter-point cut – Investors trimmed the 2026 rate cut outlook to one reduction as dissenting votes and mixed labor and inflation data show a divided committee (Bloomberg)

Fed warns job growth may be overstated – Powell says federal data could be inflating monthly hiring by up to 60,000 which implies the economy may be losing about 20,000 jobs a month instead of adding them (WSJ)

Morgan Stanley Real Estate CEO Lauren Hochfelder says the market is hitting an inflection point – Sellers are more motivated, buyers are returning, and debt markets are wide open heading into 2026 (Bloomberg)

CoStar asks the Supreme Court to review its antitrust fight with CREXi – The company warns a 9th Circuit ruling that revived claims over data access could chill innovation and force firms to share proprietary tools with rivals (Reuters)

HUD pauses Continuum of Care overhaul – Lawsuits challenge changes that cut permanent housing funding to 30% and shift support toward transitional programs and camping-ban enforcement (Bisnow)

NAHB warns existing-home sellers face price cuts in 2026 – Chief economist Robert Dietz expects most markets to see declines as affordability resets and builders hold incentives in place (Homes.com)

Hartford, CT ranks as the hottest 2026 housing market with projected 7.6% sales growth and 9.5% price growth – Rochester, NY follows with 5.3% and 10.3%, and Worcester, MA–CT comes in third with 12.6% and 2.4% (Realtor.com)

Student housing pre-leasing for Fall 2026 reaches 17.3% in November – Leasing jumped sharply from October’s decade-low start; core universities hit 18.4% as demand improved across all distance bands from campus (RealPage)

FHA refinance demand jumps 24% – Homeowners chase lower FHA rates as total refi applications rise 14% WoW and 88% YoY (CNBC)

Powell noted that the housing market faces significant challenges and that a 25 bps rate cut would not meaningfully improve affordability. He sees the current housing affordability crisis as a secular supply shortage caused by years of underbuilding, made worse by the lock-in effect from low mortgages that continues to keep mobility low and resale inventory tight.

Industrial fundamentals look steadier heading into 2026 as the top 25 markets drive most activity, construction hits a cyclical low, and tightening absorption pushes vacancy toward balance.

Industrial performance is being driven by the top 25 markets – They generate roughly two-thirds of new supply, construction and demand, cementing their role as the sector’s core engine (Colliers)

Industrial construction is hitting a cyclical bottom – The pipeline is down 62% from its 2022 peak and at its slowest pace since 2019, helping rebounding demand stabilize vacancy (Colliers)

Industrial supply and demand are tightening toward balance – Net absorption exceeds new supply in seven major markets and is nearing parity in seven more, pointing to firmer 2026 vacancy trends (Colliers)

Walmart strikes landmark deal to deploy 3D-printed retail buildings – Alquist will print more than a dozen new stores as commercial 3D construction scales beyond pilot projects; Sika will supply materials to cut costs and speed development (CNBC)

Starbucks and Dunkin’ see holiday traffic jump – Seasonal LTOs lifted Starbucks visits up 11.9% YoY and boosted Dunkin’ 3.5% to 3.6% YoY as both brands regained momentum (Placerai)

Norway’s $2.1T wealth fund avoids private data centers – CIO Alexander Knapp says NBIM will lift real estate to up to 7% by 2028 and expand into housing, retail and office while keeping data center exposure through REIT Digital Realty; rapid tech change and heavy capex make private data center bets too risky (Bloomberg)

Google expands its Midlothian, TX data center campus with an $880M build – The project is part of Google’s $40B Texas build-out; two new Haskell County sites sit just north of the Stargate campus (Bisnow)

Oracle shares fell ~11% after missing Q2 revenue estimates despite booming demand for its AI infrastructure. The company raised full-year capex to roughly $50B as new AI deals from Meta, Nvidia and OpenAI swelled its backlog and pushed remaining performance obligations to $523B, but the heavier spend deepened free cash flow to negative $10B and amplified investor concern over leverage and the pace of its multi-year data center buildout (CNBC)

EMBREY secures a $66M construction loan for 300-unit Boggy Creek apartments in Orlando, FL – PCCP provided the senior loan for the Lake Nona garden-style project at 3200 Post Oak Circle, which marks EMBREY’s sixth Orlando development (ConnectCRE)

Fairstead secures a $202M acquisition and rehab package for the 700-unit Haverstock Hills affordable complex in Houston, TX – PNC Multifamily Capital provided $120M of debt and $82M of equity for the Section 8 property at 5619 Aldine Bender Road (CommercialObserver)

Cabot, Cabot & Forbes secures a $79M construction loan for 180K SF life sciences project The Bolt in Woburn, MA – Kawa Capital Management provided the financing for the lab, office and manufacturing complex at 216 New Boston Street (CommercialObserver)

$29M-listed hotel REIT Ashford Hospitality Trust explores a sale – The company believes its portfolio value far exceeds its share price and its heavy floating-rate debt would benefit from rate cuts (Bisnow)

David Werner buys the 870K SF One Dag Hammarskjöld Plaza office tower in New York, NY for $270M – Rockpoint Group sold the Midtown East property at less than half its 2019 purchase price (CommercialObserver)

Highgate, Gencom and Argent Ventures buy the InterContinental New York Times Square in New York, NY for $230M – Tishman Realty and MetLife Investment Management sold the 607-room hotel at 300 West 44th Street; the buyers secured a $190M acquisition loan from Monroe Capital (CommercialObserver)

Hines sells a 228K SF industrial facility in Carlsbad, CA for $73M – New Pacific Realty bought the UPS-leased property at 3125 Lionshead Avenue; the deal ranks among San Diego County’s largest industrial sales of 2025 (CommercialObserver)

Amazon buys two industrial warehouses in Mesa, AZ totaling more than 1M SF for nearly $71M – Greystar sold the 537K SF buildings at 7825 and 8016 E. Pecos Road; the deal adds to Amazon’s logistics expansion around Mesa Gateway Airport (CoStar)

Hines Global Income Trust buys 451-unit Left Bank multifamily tower in Chicago, IL for $151M – The 37-story West Loop property is 94% leased and sits in a submarket with just 1.5% of existing stock under construction (AltsWire)

Hines Global Income Trust buys 493K SF Clay Terrace retail center in Carmel, IN for $203M – Whole Foods and Dick’s anchor the 94.5% leased open-air complex, which draws 4.1M annual visits and includes a 14.4-acre parcel entitled for multifamily (AltsWire)

Apollo and Capital Power target $3B in U.S. gas plant acquisitions – Data center demand is driving new generation needs; Capital Power will hold a 25% to 50% stake in each deal (Bloomberg)