Hello Brick Brief readers, 

Thank you for your continued support! Today we’re seeing office demand tilt toward convenience, Oracle shares surge on the data center buildout, and luxury retail growth reinforce the barbell trend as value and high-end outperform mid-tier.

🏢 Office Shifts Toward Convenience
Hybrid work is now standard as 66% of employees report structured policies, yet many still fail to comply, possibly because long commutes and daily inconvenience undermine the effort. This shift is steering demand toward offices closer to where people live and along reliable transit lines.

💻 Data Centers Power AI Growth
Oracle now projects $144B in cloud revenue by 2030 after landing major AI contracts with Google and OpenAI. Oracle shares surged 28% despite missing earnings expectations, as investors focused on accelerating demand for AI infrastructure and the data center buildout required to support it.

👜 Luxury Retail Leads the Barbell Trend
Luxury retailers opened 65% more U.S. stores in H1 2025 compared with the prior year, with New York leading 42 new locations. Much of this momentum comes from younger buyers who are lifting brands like Coach and Miu Miu, which strengthens the barbell effect as luxury and value continue to outperform mid-tier.

30Y Mortgage: 6.29% (+1 bps) 

10Y Treasury Yield: 4.09% (+4 bps)

WSJ Prime Rate: 7.50%

FTSE NAREIT Index: 772.96 (-0.18%) 

30-day SOFR Average: 4.37%

US job growth revised down by 911K through March – Largest downward adjustment on record signals weaker labor market and bolsters Fed rate-cut pressure (CNBC)

US consumers remain resilient – Bank executives report strong spending and credit quality, though job growth slows and confidence weakens amid tariff pressures (Reuters)

Insight: The record 911K downward revision confirmed the labor market is far weaker than expected. Moving forward it’s likely the Fed’s focus will shift toward its employment mandate over inflation, which raises the probability of deeper rate cuts in the coming months.

Hybrid work is no longer an experiment. Policies are now structured for most employees, but compliance lags as long commutes and inconvenient locations clash with shifting worker priorities.

🧱 Hybrid work is here to stay. Two-thirds of office workers now report structured policies, yet compliance remains uneven, reflecting how location and commute convenience still determine attendance

🧱 Work-life balance beats pay. Salary has been overtaken by flexibility and recognition as the top driver of retention, showing why supportive environments and shorter commutes are becoming central to office appeal

🧱 Commute proximity drives attendance. A growing share of office visits comes from employees who live within five miles of their workplace, lifting properties near transit and walkable neighborhoods

🧱 Downtown cores are slipping. Visitation is concentrating near where workers live, shifting tenants toward secondary nodes and suburban hubs while central business districts lose momentum

🧱 Live-work-play districts are winning. Mixed-use areas that combine offices with housing, retail, and entertainment lease faster and at premium rents because they align with the lifestyle and convenience workers want

Takeaway: Compliance with return-to-office mandates is stalling not from resistance to hybrid work itself but from the burden of long commutes and inflexible environments. Offices closer to where people live, with integrated amenities, are becoming the natural winners in this new cycle.

Massachusetts proposes 30-day environmental reviews for housing – Gov. Healey aims to cut red tape and boost construction as prices near $1M in Greater Boston (Bloomberg)

NYC developers pivot to work with Mamdani – With the democratic socialist leading polls, property owners seek common ground on tax reform and faster approvals despite rent-freeze concerns (WSJ)

Active listings up 20.9% YoY in August – Inventory above 1M for fourth month but recovery slowing as gap to pre-pandemic widens to 14.3% (Realtor.com)

Pending sales are down 1.3% YoY – Homes linger 60 days on market with 20.3% of listings cutting prices and delistings surging 57% (Realtor.com)

West (+26.7%) and South (+21.8%) drive inventory gains – National market balanced at 5 months supply as Northeast and Midwest stay tighter (Realtor.com)

Insight: Rising supply in the West and South continues to drive regional bifurcation in the housing market, whereas supply constraints keep prices in the Northeast and Midwest tight.

U.S. apartment asking rents rise 3% in August – Median rents for 25+ unit buildings hit $1,790 as construction slows and demand stays strong, with Chicago up 11% and Austin down 3% (Redfin)

Hybrid work policies gain broad acceptance – 66% of office workers report structured policies, though compliance lags and 38% say office experiences must improve (JLL)

Work-life balance overtakes salary as top priority – Burnout and recognition now shape retention, with flexible hours and supportive environments key to loyalty (JLL)

U.S. office occupancy slipped to 51.4% last week – Wednesday peaked at 63.2% as workers extended Labor Day, with NYC jumping 16 pts to 67.5% while Austin dropped 4 pts to 66.2% (KastleSystems)

MSQ Partners leases 38K SF at 50 West 23rd St. in Manhattan, NY – Two Trees Management inks 10-year deal with London-based marketing firm at $70 psf (CommercialObserver)

Tutor Perini leases 28K SF at 520 Eighth Ave. in Manhattan, NY – GFP Real Estate secures 6-year deal with LA-based construction firm in Garment District tower (CommercialObserver)

West Coast container prices drop 60% from June highs – Import surge fades as logistics space availability rises, signaling weaker demand ahead (CoStar)

Luxury retail expands 65% YoY in H1 2025 – Store openings remain resilient despite tariff headwinds, with New York leading 42 new locations (JLL)

Gen Z and millennials drive luxury growth – Brands like Coach, Miu Miu, and Byredo post outsized gains by capturing younger consumers (JLL)

Coffee, chicken, and Mexican chains lead QSR growth in H1 2025 – Overall visits rose but per-store traffic fell, signaling expansion may be outpacing demand (Placer.ai)

Cracker Barrel scraps restaurant revamp after backlash – Customers rejected modern design and logo changes, forcing return to traditional decor amid sales slump (WSJ)

US life sciences vacancies hit record high – Asking rents soften as concessions normalize, while construction shifts to 63% preleased build-to-suit projects (CushmanWakefield)

Life sciences transaction activity hits $8.6B in year ending Q2 2025 – Up 63% YoY even as VC and IPO activity slows, with hiring strength and emerging markets supporting growth (CushmanWakefield)

Oracle shares jumped 28% despite missing Q1 earnings and revenue expectations due to massive cloud growth projections and new AI-driven contracts. Remaining performance obligations surged 359% YoY, with Oracle forecasting $144B in cloud infrastructure revenue by 2030 and announcing major deals with Google and OpenAI (CNBC) 

Sky Developers lands $320M construction loan for Tribeca, NY condo – G4 Capital Partners backs 280K SF project spanning Franklin, Fulton, and Broadway lots after HAP Investments’ stalled plans (CommercialObserver)

Double U Development secures $51M loan for Williamsburg, NY retail – Lorimer Capital backs 126.5K SF project at 29 Wythe Ave anchored by Sky Zone and fitness tenant (CommercialObserver)

Stephen Ross secures $250M refi for West Palm Beach, FL multifamily – Ares Management upsized debt on 322-unit Laurel at CityPlace with Alo Yoga and Crate & Barrel retail (CommercialObserver)

Pacifica Hotels secures $126M refi for 7-hotel SoCal portfolio – Goldman Sachs and Peachtree financing stabilizes 601-room portfolio across San Diego, Venice, Pismo Beach, and Manhattan Beach (CommercialObserver)

Colliers acquires Greystone’s Dallas-based multifamily sales group – Deal expands Colliers’ U.S. multifamily presence as DFW leads the nation in new deliveries (Bisnow)

New Mountain Capital acquires $640M net lease portfolio predominantly in U.S. – 53 assets across 16 states plus Canada, UK, and Germany include mission-critical manufacturing facilities leased to 11 tenants (ConnectCRE)

Cottonwood closes $1B special situations fund – Firm has deployed $300M into distressed and development deals, targeting opportunities from $2T in looming CRE debt maturities (Bloomberg)

CalSTRS commits $1.7B to real estate funds – $200M to Fairfield U.S. Multifamily Core Plus Fund III and $117M to Harrison Street European Property Partners IV (IREI)

HELOC-backed credit card fintech Aven raises $110M at $2.2B valuation – Company expands into mortgage refinancing and adds Summers, McHenry to advisory board (HousingWire)

PropUp partners with Fortress OS on multifamily maintenance tech – SaaS provider’s open API integrates work orders, inspections, and automation into Fortress’s property management platform (CommercialObserver)