The Brick Breakdown

Hello Brick Brief readers, 

I hope you all had an amazing Fourth of July and long weekend! 

In recent news, Trump’s Beautiful Bill delivered major wins for real estate investors, strong June jobs data reduced the odds of a July rate cut, and private credit continued its expansion into real estate lending.

Let’s lock in and start the week strong. Here’s what you need to know.

📜 Trump’s “Big Beautiful Bill” Supercharges Real Estate
Trump’s $3.4T tax and spending bill permanently restores 100% bonus depreciation, protects 1031 exchanges, and extends Opportunity Zones, locking in long-term advantages for developers and landlords. SALT cap relief, mortgage interest deductibility, and small business income breaks further strengthen margins for high cost markets, industrial users, investor operators.

📈 Solid Jobs, Sticky Rates, and Tariff Pressure Build
June’s 147K job gain and 4.1% unemployment rate point to a resilient labor market, reducing the Fed’s urgency to cut rates as mortgage costs remain stuck near 6.75%. At the same time, Trump’s pending tariff wave is set to begin August 1 with a three week negotiation window, adding fresh global uncertainty and weighing on manufacturing sentiment.

💰 Insurers and Debt Funds Fill the Lending Gap
Banks now account for just 18% of real estate originations, down from 38%, as tighter capital rules and rising defaults push them out of the market. Life insurers and private debt funds have stepped in, offering flexible terms that are reshaping capital stacks and proving that the rise of private credit is not just a buyout story but a real estate one too.

This Week in Real Estate: Key Events & Data

Quick Markets

30Y Mortgage: 6.75% (+2 bps) 

10Y Treasury Yield: 4.33% (+7 bps)

WSJ Prime Rate: 7.50%

FTSE NAREIT Index: 771.51 (+0.13%) 

30-day SOFR Average: 4.33%

Market Pulse & Rate Watch

Strong job gains and rising trade tensions point to a resilient but uncertain economy, reducing the likelihood of near-term rate cuts as the Fed weighs solid labor data against growing global risks

House passes $3.4T tax-and-spending bill – GOP delivers Trump a major win with extended tax cuts, border funding, and deep entitlement reductions despite narrow 218–214 vote (WSJ)

U.S. to issue tariff warnings – Trump plans to notify 12–15 countries of new tariffs starting August 1, but some nations may get a 3-week extension to strike last-minute trade deals (Bloomberg)

U.S. adds 147K jobs in June – Unemployment dips to 4.1% as healthcare and government hiring offsets private-sector slowdown and manufacturing weakness amid tariff and immigration uncertainty (WSJ)

EU seeks partial US trade deal before July 9 – Von der Leyen says full pact is impossible as bloc negotiates to avoid 50% tariffs on cars, steel, and key exports (FT)

Dollar nears multi-year lows – Greenback weakens ahead of Trump’s July 9 tariff deadline, with traders bracing for volatility as new trade levies take shape (Reuters)

Brick by Brick: Real Estate Wins in Trump’s Big Beautiful Bill

Trump signed the Big Beautiful Bill into law on July 4, locking in major tax advantages for real estate investors. The law makes permanent changes to depreciation, deductions, and capital gains treatment that are expected to accelerate investment across both residential and commercial sectors.

• 100% bonus depreciation is permanently restored for real estate assets placed in service after Jan. 19, 2025. This allows businesses to immediately deduct the full cost of qualifying assets, like commercial property improvements, in the year they are placed in service, boosting cash flow and incentivizing development.
• Immediate expensing for industrial structures reduces upfront capex burdens and boosts logistics and manufacturing development
• 1031 like-kind exchanges remain protected, preserving a key tool for deferring capital gains and compounding long-term returns
• SALT deduction cap is temporarily quadrupled, while protections for business SALT deductions help profitability for multi-state firms
• Opportunity Zones are extended, giving investors continued incentives to redirect capital into underserved areas
• The mortgage interest deduction is made permanent, reinforcing support for homeownership in high-cost markets
• Independent contractors and small businesses retain a 20% income deduction, benefiting agents, brokers, and investor-operators alike
• The National Association of Realtors called the legislation a major win for property owners, developers, and housing professionals across the country

Takeaway: The bill locks in long-term tax advantages that strengthen the case for real estate investment. Bonus depreciation and 1031 protections give developers and landlords better tools to scale, while industrial expensing and SALT relief improve margins for firms active in logistics and high-tax states.

Policy & Industry Shifts

​​Trump’s Big Beautiful Bill locks in long-term tax benefits for real estate, including bonus depreciation, Opportunity Zones, and SALT relief, while scaling back green retrofit incentives

Trump’s tax bill reshapes CRE with major incentives – The One Big Beautiful Bill revives 100% bonus depreciation, expands LIHTC, and makes Opportunity Zones permanent, while cutting green retrofit credits and adding new endowment taxes (Bisnow)

Mamdani signals shift on real estate – NYC mayoral frontrunner tempers rent freeze stance and backs zoning reforms while pushing higher taxes on luxury property owners (CommercialObserver)

Policy drives retrofitting boom – Cities ramp up sustainability efforts as 63% of stakeholders cite local retrofit policies and 55% say stricter codes would accelerate upgrades (IREI)

NAR hails ‘Big Beautiful Bill’ as real estate win – New law delivers SALT cap relief, permanent mortgage interest deduction, and 20% small business income break (RISMedia)

Residential

Home prices hit record $400K as new listings dip – Listings fell 1% YoY, the first drop in nearly six months, as sellers pulled back amid soft demand (Redfin)

Homeowners stuck with 6.5%+ mortgage rates – Many who planned to refinance face higher costs as rates stay elevated and home values dip in parts of Texas and Florida (WSJ)

Canadian buyers retreat from U.S. housing – Search activity plunges amid trade war uncertainty tied to Trump’s tariff threats (NYTimes)

Office

Falling office prices are making ownership more attractive, leading some occupiers to buy instead of lease as they seek long-term control and stability amid market uncertainty

Owner-occupier office deals rise – Falling prices and tight capital markets drive more users to buy instead of lease (IREI)

D.C. and California lead in green offices – Markets like San Francisco and Oakland rank highest for LEED growth and energy-efficient stock (CommercialCafe)

Leasing

Data firm LexisNexis cuts Raleigh , NC office space by 50% – Analytics giant signed a lease for 65K SF at Centennial Campus, downsizing from 122K SF as it commits to hybrid work (CoStar)

Industrial

Industrial construction has dropped to a decade low as tariffs and tenant caution stall new projects, even as tightening vacancies and AI-driven demand shift focus to data centers

Industrial construction hits decade low – Only 86.9M SF of new projects started in 2025 as tariff uncertainty, high costs, and tenant hesitancy stall development (CommercialObserver)

Industrial vacancies decline in May – National rate dipped to 8.5%, down 30 bps from April but still up 290 bps YoY as space absorption outpaces new supply (CommercialCafe)

US industrials shift to data centers – Firms like Honeywell, Generac, and Gates Industrial chase AI-driven demand with cooling and power systems as factory activity slows (FT)

Market Mix

As banks step back from real estate lending due to rising risk and tighter credit standards, life insurers and private credit funds are rapidly expanding their role in financing the sector

Life insurers and debt funds step in as banks retreat from real estate lending – Bank share of originations dropped from 38% to 18%, while  insurers and alternative lenders now leading the market (IREI)

Hospitality

Hotel CMBS defaults climb in Southeast – Florida and Georgia lead in special servicing volume, while Atlanta tops the region for distress as bulk hotel sales and weaker travel demand pressure debt maturities (CoStar)

Airport traffic dips ahead of summer – Domestic visits have declined YoY since February, but New England and Northwest states show growth, with micro-markets like Tampa and Bakersfield defying broader trends (Placer.ai)

Life Sciences

Boston biotech hit by Trump policy turmoil – FDA delays, drug pricing pressure, and frozen Harvard research grants drive layoffs, closures, and IPO drought (FT)

Financings

Loans

Formativ lands $66M loan for Denver project – 310-unit RiNo tower near light rail to include 70% affordable units and deliver in Q3 2027 (MultiHousingNews)

Structured Finance

CBL secures $78M CMBS loan for North Carolina mall – Mesirow’s new lending arm refinances Cross Creek Mall in Fayetteville, the largest enclosed mall within 60 miles (CoStar)

M&A

Company M&A

PE firm Capitol Hill and golf retailer Worldwide Golf acquire Big 5 in $112.7M deal – The 414-store chain will go private amid slowing sales and heightened competition (CoStar)

Building & Portfolio M&A

CenterPoint pays $140.4M for NJ industrial portfolio – Illinois firm acquires two distribution centers leased to DHL and T.J. Maxx near Exit 12 of the NJ Turnpike (CoStar)

Distress Watch

APF hit with $180M default in NYC – Wells Fargo moves to foreclose on Midtown office tower after APF misses loan maturity tied to former WeWork lease (TheRealDeal)

Magna acquires Midtown NYC hotel out of foreclosure after $175M loan default – Firm takes over Moinian’s Hilton Garden Inn at 237 W. 54th St. with $10M auction bid (Bisnow)

Proptech & Innovation

AI transforms multifamily operations – Property managers use AI tools to cut costs, automate leasing and maintenance, and enhance resident experience amid staffing shortages (REBusinessOnline)