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WeWork Founder Adam Neumann is Back
Fed signals rate flexibility, while data center demand stays strong
The Brick Breakdown

Hello Brick Brief readers,
In recent news, the Fed’s flexibility is being tested as tariffs complicate its inflation outlook, WeWork founder Adam Neumann makes a comeback with his new venture, and demand for data centers continues to hold strong
💡 Fed signals flexibility as tariffs cloud inflation outlook
Fed officials, including Waller and Hammack, suggest rate cuts could come as soon as June if tariffs trigger job losses, highlighting a policy pivot toward supporting employment over temporary inflation spikes. CEOs across sectors warn tariffs will raise prices on essentials, adding pressure on the Fed to navigate trade-driven uncertainty without derailing growth.
🏢 WeWork founder Adam Neumann’s Flow raises $100M, explores partial exit
Adam Neumann’s Flow secured a $100M investment from a16z at a $2.5B valuation, reflecting continued confidence in Neumann’s vision more than broader multifamily VC appetite. The firm is also exploring a partial exit from its $205M Atlanta tower, signaling selective monetization amid expansion.
⚡ Data center demand remains a bright spot
Amazon and Nvidia report no slowdown in power needs despite recession fears, reinforcing strong momentum in AI-driven energy demand and construction. Stonepeak’s $1.5B commitment to Montera Infrastructure adds to institutional confidence, helping offset near-term concerns over tariff-hit CapEx and potential AI infrastructure overinvestment.

This Week in Real Estate: Key Events & Data

Quick Markets
30Y Mortgage: 6.92% (-2 bps)
10Y Treasury Yield: 4.31% (-4 bps)
FTSE NAREIT Index: 748.85 (+0.19%)
30-day SOFR Average: 4.35%
Market Pulse
Fed officials are signaling openness to rate cuts as steep tariffs raise recession risks, while firms are already pausing imports and warning of price hikes on essentials, which could drive inflation and weaken demand
Treasury yields fall as Fed’s Hammack signals June rate cut possible – Markets now price in 85 bps of easing by year-end amid tariff-driven slowdown concerns and mixed economic data (Bloomberg)
Fed’s Waller signals support for rate cuts if tariffs drive layoffs – Warns job losses could rise after July if steep tariffs resume, prioritizing employment over temporary inflation spikes (Bloomberg)
Tariffs stall imports of goods like lashes and toys – U.S. firms pause shipments or consider shifting production away from China, as many can't absorb Trump’s 145% tariffs and face mounting pressure to restructure supply chains (WSJ)
CEOs warn tariffs will raise prices on essentials – Firms like P&G, Nestlé, and Ford plan hikes to offset $1B+ in added costs, with inflation and weaker demand likely to follow (Bloomberg)

Policy & Industry Shifts
Radon testing rules eased for multifamily – FHFA scraps 2022 directive, leading Fannie Mae to drop testing requirements and Freddie Mac to cut testing scope, with state laws now guiding compliance (GlobeSt)
Residential
High rates, rising costs, and policy risk are cooling home sales and developer sentiment, while affordability pressures worsen with starter home prices topping $1M in over 200 cities
Existing-home sales fall 5.9% in March – Largest drop since 2022 as economic uncertainty, high prices, and 6.5%+ mortgage rates keep buyers sidelined (WSJ)
Home prices fall in 11 of the 50 largest U.S. metros – Most declines since Sept. 2023, led by San Antonio (-3.7%) and Oakland (-3.5%) amid rising inventory and economic uncertainty (Redfin)
Starter home prices top $1M in 233 U.S. cities – Up from 85 in 2020, with half of all states now hosting at least one such city, reflecting lingering affordability distortions from the pandemic housing boom (Zillow)
D.C. housing starts plummet 79% – Developers blame rent arrears and policy risk as investors flee market (Bisnow)
Tariffs hit multifamily sentiment – Apartment execs report weaker financing conditions post-April 2, despite modest gains in sales volume and market tightness (GlobeSt)
Industrial
Industrial demand held steady ahead of tariffs – Q1 vacancy rose to 6.3% as consolidations offset leasing, while construction starts plunged amid mounting economic uncertainty (CBRE)
Prologis debuts EV charging hub in LA – New modular system in Vernon targets logistics fleets amid zero-emission rules and grid delays (CoStar)
Market Mix
Strong AI-driven demand is keeping data center growth on track despite broader economic concerns, while weak consumer spending is pressuring food and senior living operators to restructure portfolios and cut costs
Data Centers
Data center demand keeps rising – Amazon and Nvidia say AI is driving sustained power needs, with no slowdown in construction or energy forecasts despite recession fears (CNBC)

Retail
Jack in the Box to shutter 200 stores, explore Del Taco sale – Chain suspends dividends and shifts to asset-light model as part of turnaround plan amid weak sales and rising costs (Bisnow)
Healthcare
Ortelius Advisors pushes $1.25B-listed Brookdale Senior Living breakup — Activist investor urges sale of 200+ underperforming senior housing properties to cut debt and reverse stock decline (Bisnow)
Earnings & Real Estate Impact
CBRE’s strong Q1 performance reflects solid leasing and sales activity, but rising tariff uncertainty and economic headwinds are beginning to weigh on forward-looking deal flow and confidence
CBRE beat Q1 earnings expectations thanks to 19% growth in global leasing and 13% in property sales, driven by robust demand for office, retail, and industrial space. However, tariff-related uncertainty has weakened incoming business momentum, prompting the firm to maintain guidance amid growing recession risk (CoStar)

Financings
Loans
Affinius lends $73M for Columbus, Ohio apartments – Thrive Companies secures financing for 486-unit Rockpointe at Quarry Trails, part of a larger 85-acre mixed-use development (CommercialObserver)
M&A
Adam Neumann’s Flow raised $100M in a Series B at a $2.5B valuation, highlighting his reentry into real estate with strong branding despite investor caution and his WeWork legacy
Company M&A
WeWork Founder Adam Neumann’s Flow raises $100M from VC a16z – The Series B values the Miami-based real estate firm at $2.5B as it expands its multifamily portfolio (CommercialObserver)
Building & Portfolio M&A
Adam Neumann’s Flow in talks to sell stake in $205M Atlanta tower – Cortland to take over 425-unit property at 3005 Peachtree, originally acquired by Neumann’s family office for $205M in 2021 (Bisnow)
The Goodman Group buys Minnesota multifamily property for $59.5M – Schactman family sells 242-unit luxury complex The Liberty in Golden Valley, 96% occupied at sale (REBusinessOnline)
Dallas to pay Ray Washburne $52M for former newspaper HQ – Deal secures key site for $3.7B convention center redevelopment, ending standoff over sale threat (TheRealDeal)

Institutional Fundraising
Stonepeak’s $1.5B launch of Montera Infrastructure reflects surging institutional demand for AI-powered data centers in key U.S. metros as digital infrastructure becomes a top investment priority
Stonepeak commits $1.5B to launch Montera Infrastructure – New platform will develop 100+ MW build-to-suit AI and cloud data centers across Tier I & II U.S. metros (GlobeSt)
Distress Watch
Martin Selig surrenders two Seattle buildings after $240M loan default – Buildings transferred to lender amid rising vacancies and $429M distressed loans (TheRealDeal)
Proptech & Innovation
Better.com, Biz2Credit launch HELOCs for small businesses – New partnership offers home equity lines of credit up to $500K, targeting business owners seeking flexible financing (NationalMortgageNews)
Diald.AI launches to streamline CRE site selection – Platform analyzes 1.7M data sources to deliver location-specific investment memos, scoring projects by success probability (GlobeSt)
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