Hello Brick Brief readers, 

Thank you for your continued support! Today we’re seeing retail shifting toward value and experiences, data center construction surpassing office for the first time, a $10.5B self storage consolidation deal, and Zillow forecasting home prices to rise 0.7% in 2026

🛍️ Retail Shifts Toward Value And Experiences
Retail sales rose 3.1% YoY in January despite winter disruptions as consumers shifted toward value and deal driven purchases, with apparel foot traffic rising 5.87% YoY and discount chains leading growth. Experiential retail outperformed, rising 18.21% YoY while department store sales fell 9.8% as consumers favored experiences over traditional retail formats.

⚡ AI Infrastructure Spending Accelerates Financial Risk
In December, data center construction spending surpassed office at $3.57B versus $3.49B for the first time. Bank of America raised its 2026 hyperscaler debt forecast to $175B as spending is expected to jump 70% to $600B; hyperscalers, however, are increasingly also relying on off balance sheet debt that ties private credit and insurers more closely to data center risk.

📦 Self Storage Consolidation Signals Cycle Turn
Public Storage agreed to acquire National Storage Affiliates in a $10.5B deal that adds more than 1,000 assets and significantly expands its platform. The company is targeting highly complementary assets that deepen market presence and enhance long term per share growth as the self storage sector emerges from the bottom of its operating cycle.

Other key news today includes:

Morgan Stanley sticks with June rate cut call despite oil surge – Firm sees temporary inflation impact and rising recession risk if crude sustains ~$125–$150 despite markets pricing cuts later (Bloomberg)

Trump calls for immediate Fed rate cut via special meeting – Push comes as markets reassess policy path amid inflation and oil uncertainty (Reuters)

US equity REIT capital raising jumps to $7.1B in February, highest in five months – Activity rises 209% MoM and 259% YoY driven primarily by debt issuance (IREI)

Chicago moves to dismiss lawsuit over Broadway rezoning – Plan aims to enable denser mixed-use development near transit to address housing costs (Bisnow)

Chicago property tax fight over $19B bill intensifies – Uncertainty deters development, contributing to rents rising 3% YoY and tax bills climbing over 30% in some areas (Bloomberg)

New York lawmakers introduce REVIVE Act to convert vacant commercial space into housing – Bill streamlines approvals for mixed-use redevelopment to boost supply (Homes.com)

NYC rent-stabilized policies push small landlords toward distress sales – Rising costs and rent limits accelerate shift to institutional ownership as mom-and-pop operators exit (WSJ)

Zillow forecasts home prices to rise 0.7% in 2026 – Existing home sales expected to increase 4.4% as easing rates unlock demand while rent growth remains muted (Zillow)

US homebuilder sentiment edges up to 38 in March – Builders continue offering incentives as higher rates and costs keep demand subdued (Reuters)

Americans 70+ now hold largest share of US real estate wealth – Older homeowners benefit from long-term price gains while younger buyers fall behind on affordability (Redfin)

Housing municipal bond issuance rises to 7% of $4.4T market – Affordable housing financing grows ~198% since 2016 led by California and New York (HousingWire)

US apartment rents rise 0.3% in February, while ~25% of markets see declines – Oversupply drives rent cuts across 33 markets led by Florida and Sunbelt metros (RealPage)

Bank of America expands by ~600K SF at One Bryant Park office building in Manhattan, NY – Tenant grows total footprint to ~2.4M SF under 20-year lease, taking full office control of tower (TheRealDeal)

Industrious expands to ~292K SF at Kato International’s Tower 49 office building in Manhattan, NY – Coworking tenant grows from 240K SF to 18 floors, making it largest flexible office location globally (CommercialObserver)

Optiver expands by 92K SF at BXP’s 360 Park Avenue South office building in Manhattan, NY – Tenant grows total footprint to ~115K SF as part of 184K SF of new leasing activity (CommercialObserver)

Amazon becomes largest US parcel carrier with 6.7B deliveries in 2025 – Surpasses USPS as in-house logistics expands and traditional carriers lose volume (Freightwaves)

Truckload linehaul rates rise 2.2% YoY to near 3-year high in February – Tight capacity drives pricing higher despite freight volumes falling 7.2% (FreightWaves)

Retail sales rose 3.1% YoY in January despite winter disruptions – Consumers shifted toward value and deal-driven purchases (Colliers)

Apparel foot traffic increased 5.87% YoY while value retailers led growth – Discount and apparel chains outperformed across top brands (Colliers)

Experiential visits rose 18.21% YoY while department store sales fell 9.8% – Consumers favored experiences over traditional retail (Colliers)

Retail landlords face pressure as regulators target restrictive lease clauses – Potential changes could increase competition by limiting exclusivity provisions in shopping centers (CoStar)

December Data center construction spending surpasses office for first time – AI-driven demand pushes monthly outlays to $3.57B vs $3.49B as investors double down on long-term computing infrastructure (Bloomberg)

Bank of America raises 2026 hyperscaler debt forecast to $175B as AI capex surges – Data center spending expected to jump 70% to $600B with Meta, Microsoft, and Alphabet driving new issuance (Bloomberg)

AI hyperscalers increase use of off-balance sheet debt for data centers – “Shadow borrowing” ties private credit and insurers more closely to AI infrastructure risk (Bloomberg)

Meta commits up to $27B to Nebius for AI infrastructure – Deal secures massive data center capacity as hyperscaler spending accelerates toward ~$650B in 2026 (Bloomberg)

US data center pipeline growth slows as power constraints bite – New projects are slowing even as total demand remains massive with 241 GW still in development (WSJ)

DMV industrial pipeline reaches 13.2M SF after doubling YoY – Data center demand drives growth as region becomes top five US market with power emerging as key constraint (CommercialObserver)

Mixed-use developer Comstock launches data center platform to develop large-scale data center campuses – Targets ~900MW capacity across mid-Atlantic and Oklahoma projects (Bisnow)

Senior housing REIT Janus Living targets $5B valuation in US IPO – Seeks $740M raise as aging demographics support demand despite volatile markets (Reuters)

Senior housing attracts investor demand as 86% plan to increase exposure in 2026 – Demographics and below replacement cost pricing drive capital into the sector (JLL)

Life sciences construction falls to 10-year low in 2026 after two years of oversupply – Reduced pipeline eases vacancy pressures and supports improving fundamentals (CBRE)

Life sciences demand stabilizes heading into 2026 as vacancy peaks – Slower development and steady leasing signal early-cycle recovery (CBRE)

Capital re-engages in life sciences real estate as equity markets and venture funding rebound – Improved financing conditions support expected pickup in transaction activity (CBRE)

Dollar Tree joins Dollar General in signaling weaker consumer outlook – Discount retailers see muted sales as lower-income shoppers pull back despite potential tariff relief (Reuters)

Public Storage to acquire National Storage Affiliates for $10.5B – Deal adds 1,000+ assets and expands platform as self-storage sector emerges from downturn (Bisnow)

Public Storage is acquiring National Storage Affiliates Trust because it sees assets that are highly complementary to its portfolio, deepen its market presence, and enhance long-term per share growth, which can create value as the self-storage sector emerges from the bottom of its operating cycle.

Fortress launches 1031 real estate exchange platform – Firm expands into private wealth capital raising and deployment across core-plus real estate (PERE)

Saks Global secures $300M in additional bankruptcy funding – Bondholders back five-year turnaround plan as retailer restructures $1.75B financing package (Reuters)

AI adoption reshapes real estate brokerage as top agents gain edge – Technology raises client expectations and rewards agents who deliver differentiated insights (HousingWire)